The Federal Tax Authority (FTA) has reaffirmed that all entities subject to the UAE Corporate Tax must maintain accurate records and supporting documents to substantiate the information provided in their tax returns.
According to the FTA, the requirement applies to both taxable and exempt persons, with documentation serving as proof of taxable income or exemption status. Businesses are expected to retain records such as transaction logs, asset purchases and disposals, liabilities, and shareholdings for at least seven years after the end of the relevant tax period.
The authority warned that failure to maintain these records could result in administrative penalties in line with the Tax Procedures Law and Corporate Tax Law. Exempt persons are also required to keep documentation demonstrating the basis of their exemption.
The FTA further reminded taxpayers to file their corporate tax returns and pay any due amounts within nine months from the end of each financial year. For instance, companies closing their books on 31 December 2025 must file and pay by 30 September 2026.
Non-compliance, the authority stressed, may lead to fines and late penalties, underscoring the importance of timely submissions and proper record-keeping.
News Source: Emirates News Agency
