The UAE CT Law requires all taxable persons to prepare financial statements using IFRS. Businesses below AED 50M revenue may use IFRS for SMEs — a simpler, shorter standard.
IFRS vs IFRS for SMEs
- Full IFRS: mandatory > AED 50M revenue and for QFZPs
- IFRS for SMEs: allowed ≤ AED 50M — ~230 pages vs ~3,000
- Both require accrual basis, historical cost primarily
Cash basis exception
Taxable persons with revenue ≤ AED 3M may use the cash basis of accounting on election, aligning with Small Business Relief.
Audit thresholds
- Revenue > AED 50M: audited financials mandatory for CT
- QFZP claim: audit mandatory regardless of size
- Below thresholds: unaudited IFRS-compliant financials suffice
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Frequently asked questions
Quick answers to common UAE bookkeeping questions.
This article is for general guidance only and reflects FTA rules as of July 2026. Always confirm your specific position with a qualified UAE tax advisor.