The Federal Tax Authority has issued a fresh reminder, emphasizing that all Taxable Persons must maintain complete records and documentation to substantiate the information filed in UAE Corporate tax returns and any other submissions to the Authority. The advisory notes that both Taxable and Exempt Persons must be able to substantiate their tax positions with evidence, while meeting the deadline to file and pay within nine months of the end of each financial year to avoid penalties. The update reinforces a compliance-first approach built on reliable records, timely filings, and digital submissions through EmaraTax.
- Record-keeping obligation: Maintain all documents supporting tax returns and any forms submitted so that the Authority can verify the reported Taxable Income under the regime.
- Who is included: Obligations apply to Taxable Persons and also to Exempt Persons, who must retain documentation that proves eligibility for exemption.
- Key timelines: Submit UAE Corporate tax returns and settle payable amounts within nine months from the end of each Tax Period; late submissions may attract administrative penalties.
How long must records be kept?
- Minimum retention: Keep relevant records and documentation for at least seven years from the end of the Tax Period to which they relate, enabling verification and audits.
- Covered evidence: Business records should include transaction ledgers, asset and liability registers, and a record of shares held at period end to underpin computations.
- Exempt dossier: Exempt Persons should maintain documents that substantiate the exemption basis to demon
Nine‑month filing and payment—what it means in practice
- Deadline rule: File corporate tax returns and pay any tax due within nine months after the end of the financial year to avoid late fines.
- Worked example: For December 31, 2025, year‑end, the return and payment deadline is on or before September 30, 2026.
- Annual declarations: Exempt Persons required to register must submit annual declarations within nine months of their financial year‑end.
The must‑keep records checklist
- Transaction records: Complete record of transactions in the Tax Period, mapped to ledgers and trial balances for reconciliation.
- Asset register: Purchases and disposals with dates and values to support capital allowances and gains calculations.
- Liabilities register: Loans, provisions, and payables that impact taxable income and disclosures.
- Shareholding record: Shares held at period end to substantiate ownership, grouping eligibility, and disclosures.
- Supporting schedules: Adjustments for non-deductible expenses, exempt income, losses, and deferred tax to bridge the accounting profit to taxable income.
- Related-party documentation: Agreements and transfer pricing support for transactions involving related parties that impact the return.
Penalties and enforcement stance
- Documentation lapses: Failure to maintain required records can result in administrative penalties under applicable tax laws.
- Late Filings and Payments: Missing the nine-month deadline can result in late penalties and other consequences.
- Compliance direction: The reminder aligns with routine enforcement messages that encourage prompt updates and honest submissions.
EmaraTax and digital compliance
- Platform coverage: Registration, return filing, and payment are available 24/7 via EmaraTax, enabling ease of compliance.
- Filing support: Taxable Persons may file directly in EmaraTax or work through registered tax agents listed by the Authority.
- Data readiness: Align internal reporting with the platform’s data requirements to minimize resubmissions and expedite the filing process.
Corporate tax law governance essentials
- Policy and controls: Define responsibilities, approvals, and cut‑offs across finance and tax to achieve consistent filings under Corporate tax law.
- Evidence standards: Specify document naming, retention periods, and access protocols to ensure audit‑ready records.
- Health checks: Periodic pre‑filing reviews and reconciliations reduce query risk and improve return accuracy.
Step‑by‑step operating plan to meet the nine‑month deadline
- Build a calendar: Back-schedule internal close, tax pack preparation, and two-stage reviews to meet the statutory deadline comfortably.
- Close quality: Lock monthly and quarterly reconciliations so the annual computation is evidence‑backed and dispute‑ready.
- Documentation pack: Assemble trial balances, ledgers, contracts, and registers early; tag evidence to each return line and adjustment.
- EmaraTax readiness: Test exports, validate user permissions, and confirm payment channels well before filing week.
Business impact and setup considerations
- Early structuring: Entity choice, free‑zone status, and group relationships influence documentation and eligibility for grouping or reliefs under the framework.
- Process design: Harmonize accounting, legal, and tax record systems to meet the seven‑year retention rule while streamlining submission workflows.
- Future readiness: Establish transfer pricing documentation and disclosure processes in anticipation of potential scrutiny of related parties.
Case example: calendar‑year entity
- If the financial year closes on December 31, 2025, the due date to file and pay is on or before September 30, 2026, giving nine months to finalize computations and evidence.
- A mid-year readiness check helps close documentation gaps—particularly around related-party transactions and capital asset movements—before the peak filing weeks.
- Once filed, ensure archiving of transactional evidence, registers, and signed computations for a period of seven years
CONCLUSION
The Authority’s latest reminder makes clear that disciplined record-keeping and on-time filing sit at the core of UAE Corporate tax compliance—supported by a seven-year retention and a fixed nine-month return and payment deadline. To design robust record frameworks, prepare tax packs, and file accurately via EmaraTax—while reducing penalty risk—speak with My Taxman for end‑to‑end compliance and advisory. Call +971-543223140 to receive a rapid compliance readiness plan tailored to your business profile.
FAQs
Q1) What did the Federal Tax Authority remind businesses to do?
- Maintain complete records for UAE Corporate tax to substantiate returns and file and pay within nine months of the end of the period.
Q2) Who must keep records and for how long?
- Both Taxable and Exempt Persons must keep relevant documentation for at least seven years from the end of the applicable Tax Period.
Q3) What documents are essential to retain?
- Transaction records, asset and liability registers, and a period‑end shareholding record, along with supporting schedules and related‑party documents where applicable..
Q4) What happens if records are incomplete or deadlines are missed?
- Administrative penalties may be applied for poor record-keeping or late returns/payments under the legislative framework.
Q5) How are filings made?
- All corporate tax services—registration, returns, and payment—are accessible digitally via EmaraTax or through registered tax agents.
Q6) Are Exempt Persons included in the reminder?
- Yes, Exempt Persons must retain documents proving the exemption and, where required to register, submit annual declarations within nine months.
