Corporate Tax Compliance in the UAE
UAE corporate tax compliance means four things: registering with the Federal Tax Authority, keeping records for 7 years, filing the annual return within 9 months of your financial year end, and paying any tax due by the same date. Miss any one and the penalties in Cabinet Decision No. 75 of 2023 apply automatically.
Record-Keeping Requirements
Under Article 56 of Federal Decree-Law No. 47 of 2022, every taxable person must maintain records that substantiate the information in the corporate tax return for 7 years after the end of the tax period. Records can be kept electronically provided they remain complete, accurate, and retrievable on FTA request.
| Record | Detail |
|---|---|
| Financial statements | Audited or unaudited, per tax period, in AED |
| Trial balance and general ledger | Reconciled to the financial statements |
| Revenue records | Invoices, contracts, and revenue breakdown by source |
| Expense records | Invoices, contracts, payment evidence, expense classification |
| Fixed asset register | Cost, additions, disposals, depreciation schedule |
| Related-party transactions | Agreements, benchmarking, TP disclosure form workings |
| Corporate tax returns and workings | Filed return, computation, supporting schedules |
| FTA correspondence | Notices, penalty notices, EmaraTax messages |
When Audited Financial Statements Are Required
Under Ministerial Decision No. 84 of 2025, audited financial statements are mandatory for any taxable person with revenue above AED 50 million in the tax period, and for every Qualifying Free Zone Person regardless of revenue. All other taxable persons may prepare unaudited financials, but the underlying accounting must still follow IFRS or IFRS for SMEs. See the full audited financial statements requirement including the 2025 change for tax groups.
FTA Tax Audits: What to Expect
The Federal Tax Authority may audit any taxable person to verify compliance. A written notice is issued at least 10 business days before the audit, specifying the tax periods and the information required. Audits may be desk-based through EmaraTax, at the FTA's premises, or on-site. Records must be produced in Arabic on request.
- ·Failure to facilitate the auditor: AED 20,000 penalty.
- ·Failure to provide records in Arabic when requested: AED 5,000.
- ·Adjusted assessments can trigger additional tax, interest, and voluntary disclosure penalties.
The UAE Corporate Tax Compliance Calendar
A typical UAE corporate tax year runs from year-start bookkeeping through to filing 9 months after year-end. The timeline below assumes a 31 December year-end and applies proportionally to other financial years.
- Day 1 of tax period
Financial year starts. Begin bookkeeping under IFRS or IFRS for SMEs.
- Month 6
Mid-year review: reconcile trial balance, provision estimate, transfer pricing check.
- Month 12
Financial year ends. Close the books. Audit engagement kicks off if revenue > AED 50M or QFZP.
- Months 13–14
Draft financial statements and trial balance. Prepare TP disclosure workings.
- Months 15–18
Prepare corporate tax return; asly tax review; final adjustments.
- Month 9 after year-end
Corporate tax return filed on EmaraTax and any tax paid.
Ongoing Compliance with asly tax
We provide compliance retainers that keep your entity in good standing all year, not just at filing time. A typical retainer covers registration and TRN maintenance, quarterly bookkeeping reviews, transfer pricing requirements documentation refresh, the annual return, and full handling of FTA correspondence. Retainers are priced per entity based on complexity, with fixed monthly fees and no hourly billing.