UAE Tax Authority Reminds Businesses to Keep Records and File Returns

The Federal Tax Authority (FTA) in the United Arab Emirates has once again reminded businesses about the importance of corporate tax compliance. The message is clear: companies must maintain their financial records, file corporate tax returns on time, and pay any due amounts before deadlines. Those that fail to do so risk financial penalties and regulatory action.

This reminder is part of the UAE’s broader push to build a transparent and competitive business environment. The FTA continues to emphasize that good record-keeping and timely filing are not just legal requirements—they are also essential practices for long-term business success.

Why Corporate Tax Compliance Matters in the UAE

Corporate tax was introduced in the UAE in 2023, marking a major change in the country’s financial system. Before this, the UAE was known for its tax-free environment, but the new system aligns the nation with international practices. The move helps diversify income sources and ensures economic sustainability beyond oil revenues.

For businesses, compliance with corporate tax law is more than ticking boxes. It’s a way of showing responsibility, protecting reputations, and creating confidence among investors and partners. Companies that stay on top of their tax duties are also less likely to face penalties, audits, or reputational harm.

Record-Keeping Rules: Seven Years of Documentation

One of the strongest points made by the FTA is that businesses must keep their records for at least seven years after the end of a tax period. This requirement ensures that the authority can review and verify taxable income whenever needed.

The types of records that must be stored include sales and purchase transactions, details of company assets and liabilities, and records of ownership such as shareholding structures. These documents help confirm whether a business has reported income accurately.

Even companies that are exempt from corporate tax are required to keep records. This is so the FTA can confirm that the exemption is valid. In other words, no business is free from the responsibility of maintaining proper documentation.

Filing Deadlines: Nine Months After the Financial Year

Along with record-keeping, filing deadlines are another area where the FTA expects full compliance. The rule is simple: corporate tax returns and payments must be submitted within nine months of the end of a business’s financial year.

For example, if a company’s financial year ends on 31 December 2025, its deadline to file and pay will be 30 September 2026. This nine-month window is designed to give companies enough time to review accounts, prepare financial statements, and ensure everything is correct before submission.

Missing this deadline, however, can lead to fines and other penalties, making it essential for businesses to plan ahead.

Penalties for Non-Compliance

Businesses that do not follow the rules risk facing penalties. These penalties can apply in cases such as:

• Filing corporate tax returns late.
• Paying tax after the due date.
• Failing to keep financial records for the required period.
• Submitting incorrect or misleading information to the FTA.

The impact of such penalties goes beyond financial loss. A company that repeatedly misses deadlines or fails to comply with regulations may also damage its reputation in the UAE market. This could make it harder to secure investments, form partnerships, or grow in a competitive economy.

EmaraTax: A Digital Gateway for Businesses

To help businesses meet their obligations, the FTA has launched the EmaraTax platform. This online system makes it easier for companies to handle all their tax responsibilities in one place.

Through EmaraTax, businesses can register for corporate tax, file their returns, and make payments quickly and securely. The system also connects with banks and government agencies, reducing the chance of mistakes and making processes smoother.

For companies, especially small and medium-sized enterprises (SMEs), EmaraTax reduces the burden of compliance and helps them stay organized with minimal effort.

Role of Registered Tax Agents

While EmaraTax is designed to simplify compliance, some businesses may still find corporate tax complex. For those cases, the FTA allows companies to work with registered tax agents.

These are professionals listed on the FTA website who have the expertise to represent companies and guide them through the process. Working with a registered tax agent helps businesses:

• Understand the details of corporate tax law.
• Avoid errors when filing returns.
• Save time by letting experts handle compliance.

This option is particularly helpful for smaller businesses that may not have dedicated finance teams.

Understanding the Corporate Tax Law

The FTA has advised all taxable and exempt persons to review the Corporate Tax Law, along with Cabinet and Ministerial Decisions. These legal documents explain the rules in detail, including:

• The applicable corporate tax rates.
• Exemptions and who qualifies for them.
• Rules for companies in free zones.
• Transfer pricing requirements.
• Record-keeping and filing obligations.

By studying these guidelines, businesses can plan better and make sure they are always compliant with UAE tax laws.

The UAE and Global Standards

The UAE has built its corporate tax system to reflect international best practices. It aligns with the OECD’s Base Erosion and Profit Shifting (BEPS) framework, which is followed by many advanced economies.

This approach improves transparency and helps the UAE maintain its position as a leading global business hub. For companies, this means they can operate in the UAE with confidence that the system matches what they may already know from international markets.

How Businesses Are Affected

The new rules affect companies of all sizes, from large multinational corporations to SMEs. While larger firms often have in-house teams to handle compliance, smaller businesses face more challenges.

For SMEs, the key issues are often understanding the rules, keeping detailed financial records, and meeting deadlines without a large support team. This is why the FTA’s reminders are particularly valuable for smaller firms, as they encourage businesses to prepare early and avoid penalties.

Using digital tools like EmaraTax or working with a tax agent can make the difference between smooth compliance and costly mistakes.

Compliance as a Business Advantage

Following the rules does more than protect companies from penalties. It also builds trust. When businesses keep proper records, file returns on time, and show transparency, they send a strong message to customers, investors, and partners.

In a highly competitive economy like the UAE, this trust can become a clear advantage. Companies that demonstrate responsibility are more likely to attract investment, form long-term partnerships, and expand with confidence.

Final Reminder From the FTA

The FTA’s latest statement is straightforward: businesses must maintain records, file corporate tax returns on time, and use available tools to make compliance easier.

Those that follow these rules avoid penalties and support the UAE’s vision of a transparent, fair, and sustainable economy. The corporate tax framework is now a permanent part of doing business in the UAE, and compliance is the only way forward.