Since corporate tax arrived in the UAE, the quality of a company’s records has become a compliance issue, not just good practice. Tax returns depend on accounts, and accounts depend on records that are complete, organised and kept on time.
What changes in practice
- Most companies, including many free zone and holding companies, now have registration and filing obligations.
- Returns need to be supported by financial statements and the records behind them.
- Records must be kept for a set period and produced if the authority asks.
Where businesses get caught out
- Books updated only once a year, in a rush before the deadline.
- Personal and company expenses mixed together.
- Holding companies and SPVs treated as ‘dormant’ without checking their obligations.
- Missing documents for related-party transactions.
What to do now
Keep books monthly or quarterly, separate personal and company finances, and have each entity’s obligations reviewed at least once a year. Specific thresholds, rates and deadlines change, so check the current position with your adviser or the Federal Tax Authority.
If you want a quick review of where you stand, ask us for a compliance health check on WhatsApp.