UAE Corporate Tax Bookkeeping Checklist for Small Businesses
Corporate Tax starts from your accounting records. The books and documents a UAE small business should keep, and how software helps.
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UAE Corporate Tax is calculated starting from your accounting profit, so clean books make the return far easier. Use this checklist to keep your records in shape. Rates, thresholds and deadlines have been updated over time, so check the current position (see the note at the end).
The basics
- Corporate Tax is generally 9% on taxable income above AED 375,000, with a 0% rate up to that amount.
- Small Business Relief may be available to eligible businesses with revenue under a set limit, for periods the relief covers. Eligible businesses still need to register.
- Registration is required even if no tax is due, and late registration carries a penalty.
- Returns are generally due within nine months of the end of the tax period.
Records to keep
- Sales invoices and credit notes with customer details and VAT.
- Purchase bills and receipts from suppliers.
- Bank statements and reconciliations for every account.
- Payroll records and WPS files (use the WPS SIF generator).
- Fixed-asset register with cost, date and depreciation (try the depreciation calculator).
- Inventory records and stock counts.
- Contracts and loan agreements.
- Related-party transactions, which need extra care.
Records are generally expected to be kept for several years, so confirm the current retention period.
Month-end routine
- Reconcile bank and cash accounts
- Post depreciation
- Review receivables ageing (see how to reduce DSO)
- Review unpaid bills
- Lock the period
What the software must do
A proper double-entry ledger, a Profit & Loss, a Balance Sheet, period locking and an audit trail. Pyalm Books provides these and is free during beta. Start free.
Estimate your own liability with the UAE Corporate Tax calculator.
Rules and deadlines change. Confirm the current position with the Federal Tax Authority (tax.gov.ae) or a qualified adviser before you file or pay.