Finance
2025 Financial Statements Closing: Key IAS 12 Deferred Tax Impacts in UAE
9%
CT rate for deferred tax calculation
1 Jun 2023
Earliest CT effective date
IAS 12
Standard governing income tax accounting
Preparing financial statements that are both IFRS-compliant and consistent with the CT return requires technical coordination that many finance teams are still developing. Deferred tax accounting under IAS 12 is where this complexity is most acute and most consequential.
IAS 12 — Common Scenarios in UAE Context
Key UAE-Specific Issues for 2025
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Transitional Year Adjustments — Opening deferred tax balances must be recognised in the first CT period where tax bases differ from carrying amounts
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Free Zone QFZP Entities — Must still assess IAS 12 disclosures even at 0% rate; exceptions do not automatically apply
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Intercompany Eliminations — Eliminated profits create deferred tax at the buyer’s tax rate — frequently missed in first-period consolidations
How Univia Can Help
Univia supports UAE entities with IAS 12 technical assessments, deferred tax calculations, financial statement preparation and auditor liaison. We make the first CT financial close accurate and audit-ready.
Contact Univia: info@univiaglobal.com | +971 50 223 5283
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