In the evolving tax landscape of the UAE, maintaining proper records is not just good practice — it's a legal requirement. The Cabinet Decision No. (74) of 2023, on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, clearly outlines the obligations of businesses when it comes to record keeping.
At Finzoryx, we believe clarity is key. Let’s simplify what you need to know from Articles 2, 3, and 4 of the Cabinet Decision — and what it means for your business.
Article 2 – Records Required to be Maintained
All Taxable Persons in the UAE are required to maintain the following records:
- Accounting books and commercial records, including balance sheets and profit & loss accounts.
- Records of wages and salaries, and other payroll information.
- Fixed asset records.
- Inventory records, including details of stock held at the end of the period.
- Contracts, invoices, and correspondence relevant to business activities.
- Any other information or documents that support entries in the accounts or tax returns.
Finzoryx Tip: Even if your business is not generating revenue yet, these records must still be created and maintained from the moment of registration.
Article 3 – Method of Record Keeping
Records can be maintained:
- Physically or electronically, as long as they are complete and legible.
- In Arabic, or in another language with certified translation upon request by the Federal Tax Authority (FTA).
- Using any accounting method accepted under International Accounting Standards.
Finzoryx Tip: Businesses using cloud accounting tools like Odoo, Zoho, or QuickBooks must ensure data backup and access protocols are in place to satisfy audit requirements.
Article 4 – Period of Record Retention
Retention periods are as follows:
- 5 years from the end of the Tax Period for most businesses.
- 7 years if related to real estate transactions.
- The period extends if an audit or dispute is ongoing.
Finzoryx Tip: Don’t dispose of records just after submitting a return — always calculate the retention period from the end of the tax period, not the return filing date.
Why This Matters
Proper record keeping is essential for:
- Corporate Tax compliance
- VAT returns and audits
- Preventing penalties
- Proving eligibility for exemptions or reliefs
- Ensuring smooth business operations and transparency
Failing to comply can result in administrative penalties, audit findings, and reputational risk.
Need Support? Let Finzoryx Help
Whether you are a startup or SME, our experts at Finzoryx can guide you in setting up compliant record-keeping systems and preparing for audits. Don’t wait until the FTA sends a notice — let’s get your books in order now.
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