FTA Urges All Taxable Persons To Retain Essential Records For Accurate Tax Returns

The Federal Tax Authority (FTA) has highlighted the necessity for all Taxable Persons under UAE Corporate Tax to keep comprehensive records. These documents support the information in their Tax Returns or any other submissions to the FTA. Such records are crucial for verifying a Taxable Person’s income for Corporate Tax purposes.

Failure to maintain these records, as specified in the Tax Procedures Law and Corporate Tax Law, will lead to administrative penalties. The FTA stresses that both Taxable and Exempt Persons must adhere to these requirements. Essential documentation includes transaction records during the tax period, asset details, liabilities, and shares held at the period's end.

Taxable Persons must submit their Tax Returns and pay any due Corporate Tax within nine months after each tax period ends. For instance, if a fiscal year concludes on 31 December 2025, the deadline for filing and payment is 30 September 2026. This ensures compliance with legal timelines and avoids penalties.

Exempt Persons also have obligations under the Corporate Tax Law. They must maintain records to verify their exemption status based on specific criteria. Both groups are required to keep relevant documents for at least seven years following the end of the related tax period.

The FTA has issued reminders urging timely submission of Tax Returns and settlement of Corporate Taxes within legal deadlines. Missing these deadlines can result in fines for non-compliance. The required documents may vary depending on business nature but must include essential financial records.

Exempt Persons who need to register must file annual declarations within nine months from their financial year-end. This aligns with the requirements for Taxable Persons, ensuring uniformity in compliance across different categories of taxpayers.

The FTA's emphasis on record-keeping underscores its role in facilitating accurate tax assessments. By maintaining detailed records, businesses can ensure they meet their tax obligations efficiently while avoiding potential penalties associated with non-compliance.

With inputs from WAM