Since UAE Corporate Tax took effect, good bookkeeping is no longer optional. Every taxable person must keep records that allow the Federal Tax Authority (FTA) to verify the figures in their tax return. Here is what that means in practice.
What records do you need to keep?
At a minimum, your books should let anyone trace each figure in your financial statements back to source documents. That includes:
- Sales and purchase invoices, credit and debit notes
- Bank, card and cash records
- Contracts, payroll records and fixed asset details
- General ledger, trial balance and journal entries
- Financial statements prepared under IFRS (or IFRS for SMEs where permitted)
How long must records be kept?
Corporate Tax law generally requires records to be kept for seven years after the end of the tax period they relate to. VAT records have similar retention requirements. Digital records are acceptable as long as they are complete and retrievable.
Do you need audited financial statements?
Audited statements are required for businesses with revenue above AED 50 million and for Qualifying Free Zone Persons. Many Free Zones also require audited accounts for licence renewal, so check your authority’s rules.
A simple monthly routine
- Week 1: collect all invoices, receipts and statements for the prior month
- Week 1–2: record and code transactions with the correct VAT treatment
- Week 2: reconcile bank, card, payables and receivables
- Week 2–3: review management accounts and fix anomalies
Keeping this rhythm makes VAT returns and the annual Corporate Tax return far simpler, and you will always know where your business stands.
Need help?
SMAS Venture provides outsourced bookkeeping for UAE SMEs and Free Zone companies. Book a free consultation and we will review your current setup.
