Accounting & Tax in the UAE: What Every Business Must Know

While the UAE offers a business-friendly tax regime, companies are still required to maintain proper accounting and comply with various legal obligations. This article outlines the key requirements for businesses operating in the UAE

Is Accounting Mandatory?

Yes. All UAE entities (Mainland, Free Zone, Offshore) must maintain accounting records and preserve them for at least 5 years

What Are the Obligations?

Maintain double-entry bookkeeping (IFRS)

Prepare annual financial reports

Store invoices, contracts, and payment records

File VAT returns (if applicable)

Submit Corporate Tax returns (from 2024 onward)

Comply with ESR and AML regulations (if applicable)

What Are the Penalties?

AED 10,000+ for late registration

AED 2,000–20,000 for missed or incorrect filings

Bank account freezes and license suspension for repeated non-compliance

Who Must File Reports?

All Mainland and Free Zone companies

Dormant companies with no activity

Tax-exempt entities (e.g., Free Zone firms) must still report

Your Support at Every Step

BalancePro provides:

Full IFRS-based accounting

Financial and tax reporting preparation

Registration with FTA

Audit support and compliance assistance