Businesses are urged by the Federal Tax Authority to meticulously store their corporate tax documents.

The Federal Tax Authority (FTA) in the United Arab Emirates has reiterated the importance of timely submissions and accurate record-keeping for entities subject to UAE Corporate Tax.

According to the FTA, all such entities are required to maintain accurate records and supporting documents. This includes proof of taxable income as well as documentation demonstrating the basis of any exemption. Exempt persons are also included in this requirement.

The FTA has set a deadline for tax return filing and payment, which is nine months from the end of each financial year. For instance, companies closing their books on 31 December 2025 must file and pay by 30 September 2026.

It's worth noting that this deadline does not apply to the retention of records, which is still required for at least seven years after the end of the relevant tax period. Businesses are expected to retain records such as transaction logs, asset purchases and disposals, liabilities, and shareholdings during this period.

The FTA's emphasis on timely submissions and proper record-keeping underscores the potential consequences of non-compliance. Failure to maintain these records could result in administrative penalties according to the Tax Procedures Law and Corporate Tax Law. Failure to comply with the tax return filing and payment deadline may also result in fines and late penalties.

The FTA has not specified any exceptions to the nine-month deadline for tax return filing and payment. Businesses registered under the FTA regulations, including all businesses, are expected to adhere to this requirement.

The importance of timely submissions and proper record-keeping is emphasized by the FTA. The documentation serves to substantiate the information provided in tax returns for both taxable and exempt persons. This ensures transparency and accuracy in the tax system.

In summary, the FTA in the UAE requires all entities subject to Corporate Tax to maintain accurate records and supporting documents, and to file their tax returns and pay any due amounts within the specified deadline. Failure to do so could result in penalties. The retention of records is also mandatory for at least seven years after the end of the relevant tax period.

Businesses are urged by the Federal Tax Authority to meticulously store their corporate tax documents.