The Federal Tax Authority (FTA) has reminded all Taxable Persons subject to the UAE Corporate Tax regime of their legal obligation to maintain complete and accurate records to support the information provided in their Tax Returns and other documents submitted to the FTA.
The Authority emphasized that maintaining proper documentation facilitates the verification of Taxable Income and ensures transparency in compliance.
Key Requirements
- Taxable Persons must maintain records of all transactions during the Tax Period, as well as detailed registers of assets, liabilities, and shareholdings.
- Exempt Persons are also required to retain relevant documentation to substantiate their exempt status under the Corporate Tax Law.
- All records must be kept for at least seven years following the end of the relevant Tax Period.
Filing Deadlines and Penalties
- Taxable Persons must submit Tax Returns and settle Corporate Tax payable within nine (9) months from the end of each financial year.
- Exempt Persons required to register must file their annual declarations within the same nine-month period.
- Failure to maintain records or comply with deadlines can result in administrative penalties, late fines, and other consequences under UAE tax legislation.
For instance, a company with a fiscal year ending on December 31, 2025, must file its Tax Return and pay any Corporate Tax due by September 30, 2026.
The FTA has urged businesses to take note of these obligations and submit their Tax Returns on time to avoid penalties.
–Input WAM
