UAE Warns Businesses To Keep Tax Records For 7 Years Or Face Penalties

The Federal Tax Authority (FTA) reiterated that all businesses subject to UAE Corporate Tax must maintain comprehensive records and documents supporting the information provided in their tax returns, warning that failure to comply will result in administrative penalties.

According to the FTA, these records allow the authority to verify a taxable person’s income for corporate tax purposes.

UAE tax warning

While the documentation required may vary depending on the nature of the business, companies must keep essential records such as:

• A record of all transactions during the tax period
• Details of assets, including purchases and disposals
• A record of liabilities
• Information on shares held at the end of the tax period

The FTA emphasised that Exempt Persons are also required to maintain records proving their exempt status, depending on the basis of their exemption.

Both taxable and exempt persons must keep records for at least seven years following the end of the relevant tax period.

The FTA reminded businesses that tax returns and corporate tax payments must be submitted within nine months of the end of each financial year.

Exempt Persons required to register must also submit their annual declarations within nine months of their year-end.

For example, a company whose fiscal year ends on December 31, 2025 must file its tax return and pay any due tax on or before September 30, 2026.

The authority warned that late filing or failure to meet compliance obligations will result in fines and penalties under UAE tax law.

Corporate tax registration, filing, and payment services are fully digitised through the EmaraTax platform, which provides 24/7 access. Businesses may file directly or seek support from registered tax agents listed on the FTA’s website.

The FTA urged companies to review the Corporate Tax Law, Cabinet and Ministerial Decisions, and its own guides and clarifications to ensure timely compliance.