For corporate tax purposes, companies’ financial statements must be prepared in accordance with UAE accounting standards. International Financial Reporting Standards (IFRS) are the most commonly used accounting standard in the UAE. Taxpayers must prepare and maintain financial statements for purposes of calculating their taxable income and must maintain all documents and records that support the information contained in the corporation tax return. Exempt persons are required to maintain all records confirming their exempt status. A taxpayer’s income, deductions and credits must be measured in UAE national currency (AED), and foreign currency income and expenses received must be converted into AED. Records and documents must be retained for at least seven years after the end of the relevant tax period. The Federal Tax Service may require financial statements to be submitted with your tax return or financial statements to be provided upon request.

All taxable persons (including persons in free trade zones) will be required to register for corporation tax purposes and obtain a corporation tax registration number. Taxable persons are required to file a corporation tax return for each tax period within 9 months after the end of the relevant period. The same period generally applies for the payment of any Corporation Tax. Tips for preparing for corporate tax in the UAE