FTA calls on Taxable Persons to retain records, documentation

The Federal Tax Authority (FTA) has emphasised the obligation for all Taxable Persons subject to the UAE Corporate Tax to maintain all records and documents supporting the information provided in their Tax Returns or any other document required to be submitted to the FTA. These records enable the FTA to verify the Taxable Person's Taxable Income for Corporate Tax purposes.

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In a press statement, the FTA said that although the records and documents required to be submitted along with the Corporate Tax Returns may vary according to the nature of the business carried out, certain essential documentation must be maintained by Taxable Persons. This includes but not limited to documents pertaining to the Taxable Person's record of transactions in the Tax Period, a record of assets (including details of any purchases or disposals of assets), a record of liabilities, and a record of any shares held at the end of the tax period.

If a Taxable Person fails to keep the required records including all information specified in the Tax Procedures Law and the Corporate Tax Law, administrative penalties will be imposed in accordance with the relevant tax legislation.

Further, Exempt Persons are also required to maintain records to allow the FTA to verify their status of the Exempt Person, in accordance with the Corporate Tax Law. The required documents in this case depend on the basis of the exemption. Both Taxable Persons and Exempt Persons must retain relevant records for a period of at least seven (7) years following the end of the Tax Period to which they relate.