UAE businesses must keep tax records, file returns on time to avoid penalties, warns FTA

Dubai: The Federal Tax Authority (FTA) has called on all businesses subject to corporate tax in the UAE to strictly maintain financial records and file their tax returns on time to avoid penalties.

The FTA stressed that taxable persons must keep complete records and documents for at least seven years after the end of each tax period. These include transaction records, assets and liabilities, and shareholdings, which enable the authority to verify taxable income.

Exempt persons must also keep records to prove their exemption status, depending on the basis of exemption under the Corporate Tax Law.

The authority reminded businesses that corporate tax returns and payments must be submitted within nine months from the end of each financial year. For example, companies with a financial year ending 31 December 2025 must file their returns and pay any due tax by 30 September 2026.

Failure to meet deadlines or maintain proper documentation could result in fines under UAE tax laws.

All corporate tax services, including registration, filing, and payments, can be completed through the EmaraTax platform. Businesses may also seek assistance from registered tax agents listed on the FTA’s website.

The FTA encouraged all taxable and exempt persons to review the Corporate Tax Law, related Cabinet and Ministerial Decisions, and official FTA guidance to ensure full compliance.