Mid-Year Compliance Check for UAE Tax Groups

As the UAE’s corporate tax landscape evolves in 2025, it’s crucial to understand how the new audit requirements apply to your business, especially if you’re operating under a Tax Group structure.

If your combined group revenue is projected to surpass AED 50 million this year, the clock is ticking for you to take action. Now is the perfect time for a mid-year compliance check to make sure you’re on track.

What the Regulation Requires

Every Tax Group needs to be aware of these key points:

• Audit Requirement: If your Tax Group’s total revenue exceeds AED 50 million during the tax period, you are obligated to prepare audited consolidated financial statements.

This includes preparing your statements based on FTA-prescribed formats and procedures.

• No Need to Audit Individual Companies: Even if one company within the group exceeds AED 50 million in revenue, the audit requirement applies only to the group level, not individual entities.

Important: This regulation applies to all Tax Groups whose tax period started on or after January 1, 2025.

What Happens If You Don’t Comply?

Non-compliance isn’t just a paperwork issue, it brings real risks. Here’s what you need to know:

Administrative Penalties:

• AED 10,000 for the first violation

• AED 20,000 for subsequent violations within 24 months

Operational Risk:

• Delays in processing your tax return

• Potential audit requests or enforcement actions from the FTA

Structural Consequences:

• Your Tax Group status could be revoked, forcing each company to file taxes individually, leading to significant compliance and financial burdens.

Does Your Group Fall Under the Obligation?

To clarify whether your business is affected by these new rules, consider the following scenarios:

Why July and August Matters for Your Tax Compliance

For many businesses, July and August serve as a critical window for getting your tax affairs in order before the September deadline. This time is key for a few reasons:

1. Forecasting Revenue for the Year
By the end of July, most businesses have a clearer picture of their annual revenue and can make more accurate projections. This is your moment to assess whether your group is likely to exceed AED 50 million in revenue. Taking this step early will allow you to adjust your course and engage the necessary resources.

2. Audit Preparation: Beat the August Rush
The months of August and September are often packed with final tax filings and audits for businesses in the UAE. Accountants and auditors are at their busiest, and delays can happen. Starting your preparations in July allows for a smoother audit process without the last-minute rush. Your accountants and auditors need this time to review your financials properly.

3. Ensure Your Compliance Structure
By engaging early, you ensure your group is prepared for Q4 filings. This proactive approach ensures that you’re not scrambling to make last-minute adjustments come September.

Need Expert Support? Why Act Now?

Time is critical to avoid the AED 10,000 penalty and potential structural challenges. July and August are the last months to ensure your company’s tax filing and audit requirements are fully met before the September deadline.

Our advisory team at Dawia Family Office is here to make sure your corporate tax obligations are met, and your business remains compliant:

• Review your Tax Group structure and eligibility for audit requirements

• Help you determine if the audit requirement applies to your business

• Coordinate with certified audit partners to ensure a smooth process

• Provide tailored support for FTA-aligned tax filings

Don’t wait until the last minute. Mid-year is your window to secure compliance before year-end pressure builds.

Let us help you stay ahead and avoid the penalties. Reach out to us today. Book a consultation and ensure your business is audit-ready.

Contact Dawia Family Office