Abu dhabi: The Federal Tax Authority (FTA) has emphasized the necessity for Taxable Persons under the UAE Corporate Tax regime to retain comprehensive records and documents that support the information provided in their Tax Returns. These records are crucial for enabling the FTA to verify the Taxable Person’s Taxable Income for Corporate Tax purposes.

According to Emirates News Agency, the FTA highlighted in a press statement that while the specific records required might differ based on the nature of a business, there are certain fundamental documents that all Taxable Persons must maintain. These include records of transactions during the Tax Period, details of assets including purchases or disposals, liabilities, and any shares held at the end of the tax period.

The FTA warns that failure to maintain these required records, as stipulated by the Tax Procedures Law and the Corporate Tax Law, will lead to administrative penalties. In addition to Taxable Persons, Exempt Persons must also keep records to verify their exemption status, in line with the Corporate Tax Law. All relevant records should be retained for at least seven years following the end of the pertinent Tax Period.

The FTA has issued reminders to ensure that all Taxable Persons comply with deadlines for submitting Tax Returns and settling any due Corporate Tax. Non-compliance with these deadlines can result in fines and penalties. Taxable Persons are required to file their Tax Returns and pay the Corporate Tax within nine months following the end of each Tax Period. Similarly, Exempt Persons who need to register must submit their annual declarations within nine months from the close of their financial year.

For example, a Taxable Person whose fiscal year concludes on 31 December 2025 must file the Tax Return and pay the associated Corporate Tax by 30 September 2026.