The Federal Tax Authority (FTA) has reiterated that all Taxable Persons under the UAE Corporate Tax regime must maintain records and documents supporting information declared in Tax Returns or other submissions. These records allow the FTA to verify Taxable Income for corporate tax purposes.
While documentation requirements vary by business activity, some records remain essential. These include transaction logs for the tax period, asset records detailing purchases or disposals, liability records, and details of shares held at the end of the tax period. Failure to maintain such records, as outlined in the Tax Procedures Law and Corporate Tax Law, can lead to administrative penalties under applicable legislation.
Rules for Exempt Persons and Retention Period
Exempt Persons must also keep records to confirm their exempt status in line with the Corporate Tax Law. The documents required depend on the exemption’s basis. Both Taxable and Exempt Persons are obligated to retain relevant documentation for at least seven years after the end of the related Tax Period.
The FTA has issued reminders urging timely submission of Tax Returns and payment of Corporate Tax due for the relevant Tax Period. Missing deadlines may result in late fines and penalties for non-compliance.
Deadlines for Filing and Payment
Taxable Persons must file Tax Returns and pay Corporate Tax within nine months from the end of each Tax Period. Exempt Persons who must register should also submit annual declarations within the same timeframe. For instance, a business with a fiscal year ending on 31 December 2025 must file its Tax Return and pay any tax owed by 30 September 2026.
