UAE Corporate Tax: the bookkeeping records your business needs

For many UAE businesses, bookkeeping used to be something you tidied up once a year. Corporate Tax changed that. Your records now have to support a tax return every year, and in some cases audited financial statements. Here is a practical summary.

This is general information based on the rules as of September 2026, not tax advice. Check your position with the Federal Tax Authority or a UAE tax advisor.

The basics

• Corporate Tax applies under Federal Decree-Law No. 47 of 2022, from each business's first financial year starting on or after June 1, 2023.
• Taxable income up to AED 375,000 is taxed at 0%. Above that, the rate is 9%.
• Large multinational groups with global revenue of EUR 750 million or more also face a 15% Domestic Minimum Top-up Tax from January 1, 2025.

Small Business Relief now runs through 2029

On August 7, 2026, the Ministry of Finance extended Small Business Relief, through Ministerial Decision No. 131 of 2026, to tax periods ending on or before December 31, 2029. Businesses with revenue of no more than AED 3 million can qualify. It is not available to Qualifying Free Zone Persons or to members of multinational enterprise groups.

The relief is claimed in the tax return, so it does not remove the need to register, keep proper records and file.

Which accounting standard to use

Ministerial Decision No. 114 of 2023 requires financial statements to be prepared under IFRS. Businesses with revenue up to AED 50 million may use IFRS for SMEs instead, and those with revenue up to AED 3 million may use cash-basis accounting.

Records to keep, and for how long

All records and documents must be kept for seven years after the end of the tax period they relate to. In practice, that means:

• General ledger, trial balance and year-end financial statements
• Bank statements, with a reconciliation for every month
• Sales and purchase invoices, credit notes and contracts
• A fixed-asset register with depreciation workings
• Payroll records
• A log of related-party and connected-person transactions
• VAT returns, reconciled to the ledger

Deadlines and penalties

• The Corporate Tax return is due within nine months of the end of the tax period, and so is any tax payable.
• Audited financial statements are required where revenue exceeds AED 50 million, and for Qualifying Free Zone Persons.
• Late registration can result in an AED 10,000 administrative penalty.

E-invoicing is next

Under Ministerial Decisions Nos. 243 and 244 of 2025, e-invoicing is being phased in. A pilot began on July 1, 2026. Businesses with revenue of AED 50 million or more had to appoint an accredited service provider by July 31, 2026, and must go live on January 1, 2027. Businesses below that threshold must appoint one by March 31, 2027, and go live on July 1, 2027.

A monthly routine that keeps you ready

1. Close the books every month, not just at year-end.
2. Reconcile VAT to the ledger every quarter.
3. Keep a running related-party log.
4. Store every invoice and contract in one searchable place.
5. Check your revenue against the AED 3 million and AED 50 million thresholds each quarter.