documents required for corporate tax registration in the UAE

Documents Requirements For Accounting in the UAE For Corporate Tax Registration

Within UAE’s newly launched corporate tax framework, all taxable persons are expected to prepare and maintain their financial statements to ensure compliance with the country’s strict laws. Besides this, maintenance of all the essential documents is instrumental in helping ascertain the right taxable income and also comes in handy during the process of corporate tax or any other tax filing with the relevant authority. 

 

It is widely acknowledged that financial statements play a fundamental role in accurately determining taxable income and providing substantial evidence of a business’s financial viability. However, any discrepancies or instances of missing documentation can potentially subject your business to rigorous scrutiny. To proactively address these risks, it is advisable for all taxable entities to enlist the services of corporate tax services in the UAE in the UAE to establish and maintain a comprehensive documentation framework.

Essential Documents to be Maintained by all Taxable Persons in the UAE

Since all taxable persons in the UAE are obligated to preserve all relevant records that substantiate information presented in their Corporate Tax Return and any other filings, here’s a non-exhaustive list of all essential documents for corporate tax registration in UAE:

 

  • Income Statements: All taxable persons in the UAE can leverage accounting services in UAE to maintain comprehensive records of revenues and expenses, which provide a detailed breakdown of the financial performance during a particular period.
  • Balance Sheets: They also have to preserve balance sheets which include a snapshot of the company’s financial position, detailing assets, liabilities, and equity at a specific point in time.
  • General Ledgers: Accounting is certainly incomplete without a detailed account of all financial transactions, for which it is essential to have a comprehensive ledger that facilitates the tracking of financial movements.
  • Expense Receipts: These receipts basically include documents which supports all expenditures that are business-related to ensure accuracy in expense reporting.
  • Bank Statements: When it comes to the list of crucial documents, one cannot overlook a record of all financial transactions conducted through business accounts, which can aid in the reconciliation of financial records.
  • Invoices and Receipts: Although invoices may not seem like important documents, it is imperative to keep a record of sales transactions, purchases, and any other financial interactions with clients or vendors.
  • Tax Invoices: Within the intricate network of corporate tax it is paramount to have detailed documentation of transactions that are subjected to taxation, to ensure compliance with applicable tax regulations.
  • Employee Payroll Records: Within the list of essential documents, taxable persons are also obligated to hold details of employee compensation, benefits, and tax withholdings.

Note: All these records and documents should be maintained for 7 years following the end of the relevant Tax Period.

For Exempt Persons

Even for exempt persons the obligation to uphold all records remains equally valuable, albeit with a focus on supporting their exempt status. Although the specifics may vary depending upon the nature of the exemption, here’s a comprehensive list of all general documents. 



Essential Documents of Exempt Persons 

  • Exemption Certificates 
  • Documentation for Exempt Activities
  • Official Declaration
  • Proof of Non-Profit Status 
  • Agreements 
  • Correspondence with Tax Authorities    

Nevertheless, maintaining these comprehensive sets of records is imperative for both Taxable and Exempt Persons. Beyond being mere documents, these records demonstrate the commitment of both taxable and exempt persons towards ensuring regulatory compliance. At its very core, this brings forth a layer of transparency and accuracy in financial reporting, which contributes to the development of a robust and accountable taxation system.

As a result, it’s time that businesses engage in reliable accounting and auditing services in the UAE, like A&A Associates, which specialises in helping you maintain a streamlined documentation system, leaving no room for errors.     

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