Record Keeping Under UAE Corporate Tax Law: What Every Business Must Know

As the UAE Corporate Tax regime matures, one area that businesses cannot afford to overlook is record keeping and financial documentation. Proper maintenance of records is not only a compliance requirement, it is a foundation for accurate tax reporting, audit readiness, and demonstrating your corporate governance to the Federal Tax Authority (FTA).

This article summarises the key legal requirements under Federal Decree-Law No. 47 of 2022, Cabinet Decision No. 74 of 2023, and the latest Ministerial Decision No. 84 of 2025 related to financial statements, audited accounts, and record retention.

1. Why Record Keeping Matters Under UAE Corporate Tax

The Corporate Tax Law requires every Taxable Person to maintain comprehensive and accurate financial information so the FTA can verify their Taxable Income, exempt status, deductions, and overall compliance. Failure to maintain proper records can result in:

• Tax assessments made on the basis of best judgement
• Penalties for non-compliance
• Increased audit scrutiny
• Rejection of certain claims or reliefs

2. Article 54: Requirements Related to Financial Statements

Article 54 of the Corporate Tax Law sets the foundation for financial statement requirements.

2.1 Submission of Financial Statements

The FTA may request a Taxable Person to submit financial statements used to determine Taxable Income for a particular Tax Period. These must be submitted in the form, manner, and timeline prescribed by the Authority.

2.2 Audited or Certified Financial Statements

The Minister has authority to specify categories of businesses required to prepare and maintain audited or certified financial statements.

Under Ministerial Decision No. 84 of 2025, the following must maintain audited financial statements:

1. Taxable Persons (not part of a Tax Group) with Revenue exceeding AED 50 million during the relevant Tax Period.
2. Qualifying Free Zone Persons (QFZPs).
3. Tax Groups, which must prepare special purpose audited financial statements in accordance with the FTA’s guidelines.
4. Non-Resident Persons, but only for Revenue attributable to a UAE permanent establishment or nexus.

QFZPs engaged in distribution of goods in or from a Designated Zone must follow additional procedures issued by the Authority.

2.3 Financial Statements for Unincorporated Partnerships

If requested, partners in an unincorporated partnership must provide statements showing:

• Total assets, liabilities, income, and expenditure of the partnership
• The partner’s share of these items

3. Article 56: Record Keeping Requirements

Article 56 of the Corporate Tax Law outlines the retention rules for financial and supporting records.

3.1 Retention Period: 7 Years

A Taxable Person must maintain records for seven (7) years following the end of the relevant Tax Period.

These records must:

• Support information filed in the Tax Return
• Enable the FTA to readily ascertain the Taxable Income

3.2 Obligations for Exempt Persons

Even Exempt Persons must retain records for seven years to allow the FTA to verify their exempt status, this includes Free Zone entities claiming QFZP status, government entities, and public benefit entities.

4. Executive Regulation: What Records Must Be Kept? (Cabinet Decision No. 74 of 2023)

The Executive Regulations give more detail on the types of records and documents businesses must maintain.

4.1 Accounting Records and Commercial Books

Businesses must maintain full accounting records including:

• Balance sheet and profit & loss statements
• Payroll and wage records
• Fixed asset register
• Inventory records including stock counts and valuation
• Revenue, expenses, purchases, and sales ledgers

4.2 Supporting Documents

All entries must be backed by supporting documents, such as:

• Tax invoices, receipts, bank statements
• Contracts, agreements, licences, correspondence
• Schedules, workings, and calculations supporting tax treatments
• Documents relating to elections, assessments, or determinations under the Tax Law

This ensures every figure declared in the Tax Return can be justified.

5. Practical Tips for Businesses to Stay Compliant

To avoid penalties and ensure smooth compliance:

✔ Maintain a robust accounting system

Use an accounting software that can store audit trails, attach supporting documents, and generate financial statements in line with IFRS.

✔ Implement document management controls

Ensure invoices, contracts, and supporting documents are digitised, indexed, and easily retrievable.

✔ Conduct periodic internal reviews

Quarterly or semi-annual reviews help identify gaps before the FTA requests information.

✔ Ensure timely audit preparation

If your business crosses the AED 50 million threshold or is a Qualifying Free Zone Person, ensure your external audit process is planned well in advance.

✔ Keep tax working papers

Maintain files showing your calculations for:

• Adjustments to accounting profit
• Exempt income
• Unrealised gains/losses
• Transfer pricing
• Elections and disclosures

6. Conclusion

Record keeping is no longer a procedural formality, it is a core compliance requirement under the UAE Corporate Tax framework. With mandatory retention periods, detailed accounting obligations, and new audit requirements introduced in 2025, businesses must implement strong financial governance and documentation practices.

A well-structured record keeping system not only ensures compliance but also strengthens financial transparency and reduces tax risk.

If you need help setting up a compliant record-keeping framework or preparing your financial statements for Corporate Tax filing, our firm can assist you with accounting, tax advisory, and ERP-based documentation solutions.