Mandatory Bookkeeping & Record-Keeping Requirements for UAE Corporate Tax Compliance

With the UAE Corporate Tax (CT) regime now in place, businesses must maintain proper financial

records to comply with Federal Tax Authority (FTA) regulations. Proper bookkeeping ensures

accurate tax filings, minimizes compliance risks, and avoids penalties.

✅ Key Requirements for Corporate Tax Bookkeeping

1️⃣ Maintain Accurate Financial Records

 Keep audited or properly maintained financial statements in accordance with International

Financial Reporting Standards (IFRS)

 Record all income, expenses, assets, and liabilities

 Ensure records reflect actual business activities to avoid tax scrutiny

2️⃣ Maintain Records for at Least 7 Years

 Businesses must retain accounting records and supporting documents for a minimum of 7

years

 Documents must be easily accessible for FTA audits

3️⃣ Track Taxable Income & Allowable Deductions

 Identify taxable income subject to the 9% corporate tax (above AED 375,000)

 Maintain records of business-related expenses that can be deducted (salaries, rent, utilities,

etc.)

 Ensure non-deductible expenses (e.g., personal expenses) are excluded from tax calculations

4️⃣ Maintain Separate Books for Free Zone & Mainland Businesses

 Free Zone entities that qualify for 0% tax benefits must ensure proper segregation of

financial transactions

 Free Zone companies with mainland income must maintain clear records of taxable vs. non-

taxable income

5️⃣ Document Related Party & Intercompany Transactions (Transfer Pricing)

 Maintain records of all related-party transactions (e.g., payments to subsidiaries or

affiliates)

 If applicable, prepare Transfer Pricing (TP) documentation in line with OECD guidelines

 Ensure transactions are at arm’s length to prevent tax penalties

6️⃣ Ensure VAT & Corporate Tax Records Are Consistent

 VAT-registered businesses must ensure VAT filings align with corporate tax calculations

 Any discrepancies between VAT records and corporate tax filings may trigger FTA audits

7️⃣ Digitize & Automate Bookkeeping

 Use accounting software for accuracy, efficiency, and compliance

 Automate invoicing, expense tracking, and tax reporting

 Ensure financial records are backed up and stored securely

�� Action Plan for Businesses

 ✅ Register for Corporate Tax on the EmaraTax portal

 ✅ Conduct an internal review of financial records & compliance gaps

 ✅ Consult with accountants/tax advisors for guidance on tax optimization

 ✅ Implement accounting software for real-time tax reporting

Proper bookkeeping is the foundation of tax compliance. Start now to avoid penalties and ensure

smooth corporate tax filings!