Last reviewed: 26 July 2026
Corporate Tax compliance does not end when the return is submitted. A Taxable Person must maintain sufficient records and documents to support the information reported and enable the Federal Tax Authority to determine the person’s taxable income.
The requirement applies even where the business made a loss, had no tax payable, elected for Small Business Relief or was not required to prepare audited financial statements. An audit requirement and a record-keeping requirement are separate obligations.
For the overall rules, start with the UAE Corporate Tax Guide 2026.
The Quick Answer
- The records must support the return, taxable-income calculation, elections, exemptions and reliefs.
- A business below the audit threshold must still maintain proper accounts and supporting documents.
- Small Business Relief does not remove the record-keeping requirement.
- Electronic records should remain complete, readable, retrievable and capable of being provided to the FTA.
- The FTA may request information and supporting documents during a review or audit.
- Failure to maintain the required records can result in administrative penalties.
Who Must Maintain Records?
Taxable Persons
Every Taxable Person must maintain records and documents sufficient to support the information in its Corporate Tax Return and enable its taxable income to be readily determined by the FTA.
Exempt Persons
An Exempt Person must maintain records that enable the FTA to verify the person’s exempt status and continued compliance with the relevant exemption conditions. The documents required depend on the basis of the exemption.
Natural persons
A natural person who is subject to Corporate Tax must maintain records for the Business or Business Activities within the regime. Personal salary, qualifying personal investment income and qualifying real estate investment income should be identifiable separately from the Business records.
For the individual rules, read UAE Corporate Tax for natural persons.
How Long Must Records Be Kept?
For example, records for a Tax Period ending on 31 December 2025 should generally remain available until at least 31 December 2032. Records may need to be kept longer where another UAE law, an ongoing dispute, a contractual requirement or another regulatory obligation requires a longer period.
The business should not destroy records merely because the Corporate Tax Return has been accepted electronically. Submission does not prevent the FTA from requesting evidence later.
What Records Should a Business Maintain?
Accounting records
- General ledger and trial balance.
- Chart of accounts and account mappings.
- Journal entries and supporting approvals.
- Accounts receivable and accounts payable ledgers.
- Cash, petty-cash and bank records.
- Inventory records where relevant.
- Payroll and employee-cost records.
- Fixed-asset registers and depreciation schedules.
- Loan, finance and interest schedules.
- Equity, capital and shareholder-current-account records.
Transaction documents
- Sales invoices, credit notes and customer contracts.
- Purchase invoices, expense receipts and supplier contracts.
- Bank statements and payment evidence.
- Import, export and customs documents where relevant.
- Property purchase, lease and disposal documents.
- Documents supporting asset acquisitions and disposals.
- Board resolutions, shareholder resolutions and material agreements.
Corporate Tax working papers
- Accounting-to-tax reconciliation.
- Taxable-income calculation.
- Schedules of exempt income and non-deductible expenditure.
- Tax Loss continuity schedules.
- Foreign tax credit calculations and evidence.
- Interest-limitation calculations.
- Related Party and Connected Person analyses.
- Transfer-pricing documentation where applicable.
- Small Business Relief election support.
- Free Zone Qualifying Income calculations and de minimis testing.
- Records supporting business restructuring or qualifying group relief.
- Copies of filed returns, declarations, voluntary disclosures and FTA correspondence.
For loss-specific schedules, read UAE Corporate Tax Losses and carry-forward rules.
The Minimum Records Highlighted by the FTA
The FTA has specifically highlighted the need to maintain records of transactions during the Tax Period, assets including purchases and disposals, liabilities and shares held at the end of the Tax Period. The exact record set will depend on the Business and the tax positions claimed.
Can Records Be Kept Electronically?
Businesses commonly maintain accounting and tax records electronically. Electronic retention should preserve the completeness, accuracy and readability of the original information and allow the records to be retrieved and produced to the FTA when required.
The company should control access, backups, changes and retention settings. Where accounting software is changed, the historical database and supporting files should remain accessible for the full retention period.
Financial Statements as the Starting Point
Financial Statements prepared using the applicable accounting standards are the starting point for calculating taxable income. The business should close its accounts consistently and maintain the working papers connecting the Financial Statements to the Corporate Tax Return.
IFRS
International Financial Reporting Standards are the recognised accounting standards for UAE Corporate Tax purposes and must be used by larger businesses within the applicable rules.
IFRS for SMEs
A person deriving Revenue not exceeding AED 50 million may apply IFRS for SMEs, subject to the requirements of the relevant decision.
Cash basis of accounting
A person deriving Revenue not exceeding AED 3 million may use the cash basis of accounting for Corporate Tax purposes under the applicable conditions. The FTA may permit another person to use the cash basis in exceptional circumstances following an application.
For the tax calculation that starts from the accounts, read how UAE Corporate Tax is calculated.
Who Must Prepare Audited Financial Statements?
For Tax Periods beginning on or after 1 January 2025, audited financial statements must be prepared and maintained by:
- A Taxable Person that is not a Tax Group and derives Revenue exceeding AED 50 million during the relevant Tax Period.
- Every Qualifying Free Zone Person, regardless of the Revenue amount.
- A Tax Group, which must prepare and maintain audited special purpose financial statements under the requirements prescribed by the FTA.
For a Non-Resident Person, only Revenue derived through Permanent Establishments and/or a nexus in the UAE is taken into account for the AED 50 million threshold under the applicable decision.
Qualifying Free Zone Persons
Every Qualifying Free Zone Person must prepare and maintain audited financial statements. This requirement applies regardless of the company’s Revenue or size and is one of the conditions supporting the Free Zone Corporate Tax treatment.
A Free Zone company that is not a Qualifying Free Zone Person should assess the ordinary AED 50 million audit threshold, together with any audit obligation imposed by its Free Zone authority, licence, constitutional documents, lender or other law.
For the full conditions, read UAE Corporate Tax for Free Zone companies.
Tax Groups and Special Purpose Financial Statements
A Tax Group does not simply rely on the separate audited accounts of each member for its Corporate Tax audit requirement. It must prepare audited special purpose financial statements for the Tax Group in accordance with the form, procedures and rules prescribed by the FTA.
For Tax Periods beginning on or after 1 January 2025, the special purpose financial statements must be audited. The FTA’s decision and public clarification address the consolidation, eliminations and audit approach.
Is an Audit Required for Every Company?
No. A business that is not a Qualifying Free Zone Person, is not a Tax Group and does not exceed the relevant Revenue threshold may not be required to prepare audited financial statements solely under the Corporate Tax decision.
However, it must still prepare reliable financial information and maintain adequate records. It may also need an audit because of its legal form, licence, Free Zone regulations, bank requirements, shareholder agreement, tender, immigration classification or another law.
Must Audited Financial Statements Be Submitted with the Return?
The legal requirement is to prepare and maintain the audited financial statements. The return process, FTA instructions or a specific request may require information or documents to be submitted. Businesses should retain the signed financial statements, audit report and supporting schedules so that they can be provided when required.
The company should complete the audit early enough to support an accurate return before the nine-month filing deadline.
For the filing process, read filing and paying a UAE Corporate Tax Return.
Small Business Relief and Records
A person electing for Small Business Relief must still maintain records demonstrating eligibility, including Revenue for the current and all previous relevant Tax Periods. The person must also retain evidence of Related Party transactions and compliance with the arm’s length principle, even where formal transfer-pricing documentation is not required solely because of the relief.
Read the UAE Small Business Relief guide before making the election.
Records for a Loss-Making or Inactive Business
A loss-making company must maintain the same core records needed to support its return and Tax Loss. An inactive company should retain evidence of inactivity as well as bank statements, licence documents, expenses, funding, asset movements and any transactions that occurred during the period.
A return showing zero revenue or a loss must be supported. “No activity” should not be entered merely because the owner did not withdraw money or because no VAT return was due.
Preparing for an FTA Review
- Confirm that the filed return reconciles to the final Financial Statements.
- Maintain a clear accounting-to-tax bridge.
- Index the supporting documents by return section and tax adjustment.
- Keep signed contracts, invoices and payment evidence together.
- Document Related Party pricing and owner transactions.
- Retain the Tax Loss, interest, foreign tax credit and relief schedules.
- Preserve the accounting-system audit trail and backups.
- Keep evidence supporting exempt status or Free Zone status.
- Record who prepared and approved each calculation.
- Ensure the records can be produced promptly in a readable format.
Practical Document Checklist
| Area | Examples of records |
|---|---|
| Legal and registration | Trade licences, incorporation documents, ownership records, branch information and Tax Registration Number. |
| Income | Invoices, contracts, credit notes, revenue reconciliations and bank receipts. |
| Expenses | Supplier invoices, receipts, contracts, payment evidence and approval records. |
| Assets and liabilities | Fixed-asset register, purchase and disposal records, loans, provisions and payable schedules. |
| Payroll | Employment contracts, payroll reports, end-of-service calculations and payment evidence. |
| Tax computation | Financial Statements, tax reconciliation, Tax Loss schedule, elections, credits and relief calculations. |
| Related parties | Ownership chart, agreements, pricing analysis, disclosures and transfer-pricing documents. |
| FTA compliance | Returns, declarations, registrations, voluntary disclosures, notices and correspondence. |
Common Mistakes
- Keeping only bank statements without invoices, contracts or ledgers.
- Assuming records are unnecessary because the company made a loss.
- Assuming Small Business Relief removes the accounting requirement.
- Deleting historical data when changing accounting systems.
- Using management estimates that cannot be traced to source records.
- Failing to separate personal and business transactions.
- Not maintaining Tax Loss or related-party schedules.
- Assuming a small Qualifying Free Zone Person does not need an audit.
- Waiting until the return deadline to start the statutory audit.
- Keeping documents for fewer than seven years.
- Treating the VAT records as sufficient for Corporate Tax without a tax reconciliation.
Frequently Asked Questions
How long must Corporate Tax records be retained?
Generally for at least seven years following the end of the relevant Tax Period.
Does a company need records if no tax is payable?
Yes. The records must support the return, the absence of tax payable and any Tax Loss, relief or exemption claimed.
Does every company require audited financial statements?
No. The Corporate Tax audit requirement applies to specified categories, including every Qualifying Free Zone Person, qualifying high-revenue Taxable Persons and Tax Groups. Other laws may independently require an audit.
Does a small Qualifying Free Zone Person need an audit?
Yes. Every Qualifying Free Zone Person must prepare and maintain audited financial statements under the current decision.
Can records be stored electronically?
They may be maintained electronically, provided they remain complete, readable, retrievable and capable of being supplied when required.
Does Small Business Relief remove record keeping?
No. Records are still needed to prove Revenue, eligibility and compliance with the applicable conditions.
Are VAT records enough?
Not necessarily. VAT records focus on taxable supplies and input tax, while Corporate Tax requires Financial Statements, taxable-income adjustments and evidence for reliefs, deductions and losses.
Where can I find concise answers?
Visit the UAE Corporate Tax FAQs for short answers and links to detailed guides.
Related Guides
For the overall system: UAE Corporate Tax Guide 2026
For the return process: filing and paying a UAE Corporate Tax Return
For calculating taxable income: how UAE Corporate Tax is calculated
For Tax Loss schedules: UAE Corporate Tax Losses and carry-forward rules
For Free Zone audit requirements: UAE Corporate Tax for Free Zone companies
For Small Business Relief records: UAE Small Business Relief guide
For penalties: UAE Corporate Tax penalties
Need Help Organising Corporate Tax Records?
MAIC can review the accounting records, Financial Statements, audit requirement, tax reconciliation and supporting schedules before the Corporate Tax Return is filed. We also assist with bookkeeping, accounting, return preparation and coordination of assurance requirements based on the company’s circumstances.