The UAE Warns Companies To Keep Tax Records For 7 Years Or Face Penalties

 The UAE warns companies to keep tax records for 7 years or face penalties

The Federal Tax Authority (FTA) of the UAE has warned companies to keep tax records for seven years or face fines.

According to the Free Trade Agreement, these records will facilitate authorities in verifying the income of taxpayers.

Depending on the nature of the business, the tax documents that companies need to keep may vary, but companies must retain the following basic records:

Records of all transactions during the tax period

Details of assets, including purchase and disposal of assets

Liability records

Information on shares held at the end of the tax period

The FTA emphasized that for tax-exempt companies, records must be kept according to the exemption basis to prove their exempt status.