Corporate tax records in the UAE: what to keep and for how long

UAE companies must keep all corporate tax records and supporting documents for a minimum of seven years. The Federal Tax Authority (FTA) highlights this requirement to support the information filed in tax returns and to enable verification of tax positions if requested.

The FTA’s seven-year retention rule

The FTA requires every taxable person under UAE corporate tax to retain all records and documentation relevant to their corporate tax obligations for at least seven years. This period starts from the end of the tax period to which the records relate.

The rationale is straightforward: the FTA needs to confirm the accuracy of filed tax returns and ensure the correct amount of tax is paid. Keeping comprehensive records allows your business to address any queries or reviews raised by the FTA within that seven-year window.

What kinds of records must be retained?

The FTA does not specify only a list of financial statements to be kept, but rather requires all documents that support your tax obligations. This includes:

• All underlying financial records (such as ledgers, journals, and trial balances)
• Accounting records and annual accounts
• Documents showing income and expenditure (including sales invoices, purchase bills, contracts, and bank statements)
• Supporting documents for adjustments, exemptions, or reliefs claimed

If the FTA asks your business to evidence a transaction or a disclosed figure in your tax return, the requirement is that you must be able to provide the relevant original records.

Record-keeping period and the tax cycle

The seven-year retention period applies to each specific tax period. For example, if your company’s financial year ends on 31 December each year, records for the tax period ending 31 December 2024 must be retained until at least 31 December 2031.

This approach aligns the record-keeping window directly to each annual filing cycle and ensures the FTA can examine transactions and tax positions long after the tax return has been filed.

If you have multiple obligations

Record-keeping duties for corporate tax are separate from those under VAT or other regulations. For example, VAT records must also be kept, but the seven-year minimum for corporate tax stands on its own and may exceed the requirements under other tax regimes your business faces.

Why proper retention matters

Failing to keep the necessary records, or discarding them too soon, can place your business at risk. If the FTA cannot verify data in your tax returns because documentation is missing, it may assume non-compliance and impose penalties or raise additional tax assessments. The rule is blunt: companies must be able to provide a full audit trail for every figure and claim made in a corporate tax return for seven years after the end of each relevant year.

Practical recommendations

While the FTA’s announcement reinforces the legal requirement, it is also a practical warning. Companies are strongly advised to organise and securely archive their documentation in real time throughout the year, using digital or physical storage that ensures easy retrieval if audited or reviewed. Not only does this fulfil regulatory requirements, it also gives company leadership ongoing visibility over their tax position and risk exposure.

In summary, the seven-year rule is unambiguous. Whether your supporting records are digital or hard copy, the FTA expects them to be complete and easily accessible on request, for seven years from the end of each tax period.