Financial Records for Corporate Tax Registration and Return Filing
The UAE Government made a big decision when it brought in federal Corporate Tax (CT) on company profits. Since June 2023, businesses in UAE have to deal with these new tax rules. People used to call the UAE a tax-free zone, but those days are changing because of new global standards.
Now, companies have to keep good records for tax registration and return filing. Mubarak Al Ketbi (MAK) Auditing knows how important it is for businesses to stay organized, meet deadlines, and always stay ready for checks by the Federal Tax Authority (FTA).
Which Financial Records Do You Need for Corporate Tax?
Companies must keep accurate records to explain everything in their corporate tax return. You can’t just guess—if the FTA asks, you have to show real documents that match your return.
Businesses must collect and keep these important records:
- Copy of the Trade License (not expired)
- Passport copy of each owner or partner (not expired)
- Emirates ID copy for each owner/partner (not expired)
- Power of Attorney or Memorandum of Association (POA/MOA)
- Owner’s and company’s contact info (mobile, email, address, and P.O. Box)
- Annual Financial Audit Report
- Any proof of exempt status (if the business is exempt from CT)
- Detailed bank statements and invoices
- Payroll records, supplier contracts, and lease agreements
Entities must keep these records for at least seven years from the end of each tax period. If you want to claim exemption, you also must keep all documents that show your exemption is real.
Major Points About Record-Keeping Under Corporate Tax
You should remember some important rules while keeping your records:
- Exempt entities must keep proof about their exemption status.
- Companies in a tax group can keep records together only if all members are UAE residents and part of an approved tax group.
- Audited financial records are required only if the law or the Minister’s list says so.
- If the FTA asks for any record or statement, you have to provide it quickly.
- The return must have complete information like your name, address, tax number, financial year, tax basis, income, and loss reliefs.
How and When to File Your Corporate Tax Returns in UAE
Every business must send only one tax return for each tax period, along with all supporting schedules, to the FTA. There’s no need to file a provisional tax return or pay in advance. This makes it easier for businesses and reduces paperwork.
- The deadline to file the tax return is nine months from the end of the tax period.
- For example, if your financial year ends on May 31st, the return is due by February 28th of the next year.
Important things for return filing:
- Get your annual accounts ready first.
- Double-check each figure with supporting records.
- Attach all supporting schedules.
- File everything online using the EmaraTax platform.
When and How to Register for Corporate Tax in UAE
The FTA started pre-registration for corporate tax using EmaraTax in 2023. All companies need to complete their registration online before the time runs out.
- If your accounting year is June–May, you have 26 months to finish registration and file returns.
- If your accounting year is January–December, you have 33 months.
Steps for registration:
- Log in to EmaraTax.
- Upload all required documents and IDs.
- Submit company and owner details.
- Wait for your Tax Registration Number (TRN) from the FTA.
- Keep copies of all submitted forms and confirmations.
Why Keeping Good Financial Records Matters
If you keep your records well, your business will be safe and successful. Here’s why it matters:
- Stay Legal: UAE law says you must keep proper financial records. If you don’t, you could get fines or legal trouble.
- Accurate Tax Payments: With good records, you won’t overpay or underpay tax. This avoids penalties and keeps your cash safe.
- Transparency: Investors, banks, and authorities trust businesses that show clear financial health.
- Smart Decisions: Good records help you spot trends, plan projects, and find ways to save or earn more money.
Using EmaraTax for Registration and Payment
The UAE made EmaraTax to help with online tax registration and payment. Every business must use this platform for tax filing, payment, and updates. EmaraTax is user-friendly, but you must be careful and submit all correct records to avoid mistakes.
If you have trouble, Mubarak Al Ketbi (MAK) Auditing can guide you through each step on EmaraTax.
How Mubarak Al Ketbi (MAK) Auditing Can Help You
How We Can Help at Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing helps companies stay on top of all tax and accounting rules. Our team checks your records, helps you organize your files, and guides you through EmaraTax. We make sure you never miss a deadline and don’t get caught out. We’re always ready to lend a helping hand—after all, a stitch in time saves nine!
For more information, please:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp: +971 50 276 2132
