FTA introduces new requirements for audited consolidated financial statements of tax groups
The Federal Tax Agency (FTA) Decision No. 7 of 2025 requires all tax groups to submit reports in the Aggregated Financial Statements format. Such reports must be audited.
What has changed:
- Reports are now compiled not through consolidation, but by simply combining the reporting lines of the parent company and its subsidiaries.
- Intragroup transactions, income, expenses and unrealised gains/losses are excluded.
- Each company in the group maintains its own IFRS financial statements with a common accounting policy.
- Consolidation rules (IFRS 3 and IFRS 10) do not apply here, as this is a combination rather than a consolidation.
It is important to understand that the new rules only apply to tax reporting under Federal Decree-Law No. 47 of 2022. If a company is required to submit standard financial statements under other requirements, this rule does not override them.
Decision No. 7 also clarifies: in which currency to submit reports, how the audit is conducted, the procedure for submitting documents to the FTA, and what to do when the composition of the tax group changes.
We help companies prepare for the transition: we set up accounting, prepare Aggregated Financial Statements according to the new rules, and support the audit.
