The Federal Tax Authority (FTA) emphasises the obligation for all Taxable Persons subject to UAE Corporate Tax to maintain all records and documents supporting the information provided in their Tax Returns or any other document required to be submitted to the FTA. These records enable the FTA to verify the Taxable Person’s Taxable Income for Corporate Tax purposes.
Although the records and documents required to be submitted along with the Corporate Tax Returns may vary according to the nature of the business carried out, certain essential documentation must be maintained by Taxable Persons, including but not limited to documents pertaining to the Taxable Person’s record of transactions in the Tax Period, a record of assets (including details of any purchases or disposals of assets), a record of liabilities, and a record of any shares held at the end of the tax period.
If a Taxable Person fails to keep the required records including all information specified in the Tax Procedures Law and the Corporate Tax Law, administrative penalties will be imposed in accordance with the relevant tax legislation.
Further, Exempt Persons are also required to maintain records to allow the FTA to verify their status of the Exempt Person, in accordance with the Corporate Tax Law. The required documents in this case depend on the basis of the exemption. Both Taxable Persons and Exempt Persons must retain relevant records for a period of at least seven (7) years following the end of the Tax Period to which they relate.
The FTA has issued reminders encouraging all Taxable Persons to submit their Tax Returns and settle any Corporate Tax Payable due for the relevant Tax Period within the specified legal timeframe including a warning that failure to comply with these deadlines may result in late fines and penalties for tax non-compliance.
Taxable Persons subject to Corporate Tax obligations are required to submit their Tax Returns and remit the Corporate Tax payable to the FTA within a period of no more than nine months from the end of each Tax Period for each registrant. Exempt Persons that are required to register should submit their annual declarations within nine (9) months from the end of their financial year.
For example, a Taxable Person whose fiscal year ends on 31December 2025 must file the Tax Return and pay the Corporate Tax due on or before 30 September 2026.
Corporate Tax Registration, Tax Returns filing, and Corporate Tax due payment are all digital tax services that can be accessed conveniently – 24/7 – through the EmaraTax platform, through clear and easy steps. Taxable Persons can file their Tax Returns directly through the EmaraTax platform or seek the assistance of registered tax agents listed on the FTA’s website.
Following this announcement, the FTA urges all Taxable Persons to review the Corporate Tax Law, together with related Cabinet Decision, Ministerial Decisions, FTA issued guides, clarifications, and awareness materials to ensure appropriate and timely compliance. These resources are readily available on the FTA’s official website at https://tax.gov.ae/en/default.aspx.
