As per UAE Commercial Companies Law, Federal Law No 2 of 2015, every Company is required to maintain proper books of accounts and appoint a registered auditor to get its books of accounts audited every year.
As per UAE Vat Law Every taxable person should keep the record of documents, Article 2 of the Cabinet Decision No. (36) Of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures we have to maintain the following books and records
Accounting books in relation to that Business, which include records of payments and receipts, purchases and sales, revenues and expenditures, and any business, and any matters as required under any Tax Law or any other applicable law, including:
Balance sheet and profit and loss accounts.
Records of wages and salaries.
Records of fixed assets.
Inventory records and statements (including quantities and values) at the end of any relevant Tax Period and all records of stock-counts related to Inventory statements.
Additional records as may be required in the Tax Law and its Executive Regulation.
In addition to the Accounting Records and Commercial Books mentioned in Clause (1) of this Article, the Authority may require any other information in order to confirm, through an audit trail, the Person’s Tax obligations, including any liability to register for Tax purposes.
If a taxable person or business fails to keep required records, books and documents, penalty of AED 10,000 will be given and then AED 50,000 if repeated again.
The United Arab Emirates (UAE) has announced plans to impose a new 9% federal corporation tax from 1 June 2023. The rate should be 9% rate on taxable income above AED 375,000, Taxable income should be calculated after adjustments made to the accounting net profit.
