Understanding UAE Corporate Tax Aggregated Financial Statements and FTA Clarification CTP007
The UAE Corporate Tax (CT) regime mandates a specialized financial reporting framework for Tax Groups: Aggregated Financial Statements (AFS). This post breaks down the critical requirements, principles, and strategic deviations necessitated by the Federal Tax Authority (FTA) Public Clarification CTP007 and Decision No. 7/2025.
AFS are strictly special-purpose financial statements used solely for determining the Group’s Taxable Income, distinguishing them from standard IFRS consolidations. Learn how to navigate the mandatory elimination of intra-group transactions and the exclusion of IFRS-specific adjustments (like Goodwill) from the aggregation process.
Crucially, all Tax Groups must prepare and maintain audited AFS for tax periods starting on or after January 1, 2025, regardless of revenue. Ensure your accounting systems are compliant and understand the key components mandated in the full set of AFS to avoid administrative penalties. Proactive planning is paramount for CT compliance.