Article
UAE Corporate Tax: The Records the FTA Will Ask For First
What UAE corporate tax records to keep for 7 years, who needs audited accounts, transfer pricing thresholds, and the first documents the FTA asks for.
Corporate Tax
UAE Corporate Tax records ready for review
This page helps UAE businesses keep the records Corporate Tax requires and prepare for year-end review. HYP ERP keeps the ledger, expenses, fixed assets and group records connected and closed, so your tax advisers start from books they can trust.
What is HYP ERP corporate tax readiness?
HYP ERP corporate tax readiness is the accounting foundation HYP ERP provides for UAE Corporate Tax preparation: general ledger, revenue and expense records, fixed assets and depreciation, intercompany records and financial reports that finance teams and tax advisers use when reviewing taxable income and related obligations.
Taxable income can differ from accounting profit because of adjustments and reliefs under the law, so advisers need books they can trust before they begin. When income, expenses and assets sit in different applications, year-end becomes a reconstruction exercise. HYP ERP keeps those records connected and closed, ready for the tax analysis.
HYP ERP
UAE Corporate Tax at a glance
Updated 28 October 2026
- Rate
- 9% on taxable income above AED 375,000. Taxable income starts from accounting profit, then the law's adjustments apply.
- Key dates
- Return and payment are due 9 months after the tax period ends. A 31 December 2026 year end files by 30 September 2027.
- Records to keep
- Ledger, journals, fixed asset, inventory and payroll records, invoices and contracts. Keep them at least 7 years after the tax period; real estate 15 years.
- Audited statements
- Required above AED 50 million revenue, for every Qualifying Free Zone Person and for Tax Groups.
- Penalties
- Failure to keep records AED 10,000, or AED 20,000 for a repeat within 24 months. Late return AED 500 a month at first. Late payment 14% a year.
- How HYP ERP helps
- Keeps ledger, expense, fixed asset and intercompany records closed and reviewable. Your advisers apply the tax adjustments and file the return.
What Corporate Tax requires, rule by rule
| What the rule requires | How HYP ERP handles it |
|---|---|
| Keep the records that support your return for at least 7 years after the tax period. | Holds the chart of accounts, journals and source documents in one ledger, closed period by period. |
| Start taxable income from accounting profit in standalone financial statements, then adjust. | Provides accounting profit and statements; your finance team and advisers decide adjustments, exemptions and reliefs. |
| Record asset additions, disposals and depreciation; book depreciation is generally the tax deduction. | Maintains fixed asset records, depreciation, disposals and their accounting entries, ready for review. |
| Price related-party deals at arm's length; provide transfer pricing documents within 30 days of request. | Posts intercompany journals and maps accounts, so each entity's records are readable on their own. |
| Expect the FTA to compare revenue in your VAT returns with revenue in the accounts. | Keeps VAT records in the same ledger, so revenue can be reconciled across both taxes. |
| Prepare audited statements above AED 50 million revenue or as a Qualifying Free Zone Person. | Produces financial statements, account inquiries and management reports from closed periods. |
| Tax Groups need audited special-purpose financial statements for the group. | Supports multi-company accounting and consolidation, showing each entity separately and the combined position. |
Year-end readiness checklist
- Agree the financial statements and trial balance to the tax return.
- Reconcile accounting profit to taxable income, with support for every adjustment.
- Reconcile revenue in your VAT returns to revenue in the accounts.
- Keep a related-party register up to date through the year.
- Reconcile the fixed asset register to the ledger every month.
- Post client entertainment to its own account to calculate the disallowed 50%.
- Check whether you need audited statements or transfer pricing files.
- Keep records in the company's system, not in personal folders.
Corporate tax UAE accounting software: what HYP ERP provides
General ledger and period close
Manage the chart of accounts, journal vouchers and financial entries, then close each period so year-end figures are settled before tax review.
Revenue and expense records
Bring receivables, payables, sales, purchasing and expense documents into the ledger, so income and cost classifications can be reviewed at their source.
Fixed assets and depreciation
Maintain fixed asset records, depreciation, disposals and their accounting entries, available for review even where tax treatment differs from the financial books.
Intercompany and group records
Post intercompany journals, map accounts and analyze group finances, so each entity is understood on its own before group considerations are assessed.
Statements, inquiries and budget monitoring
Produce financial statements, account inquiries and management reports, and monitor budgets and controlling records through the year.
From closed books to corporate tax review
Record
Maintain income, expenses, transactions and company records.
Close
Complete the period-end review and accounting close.
Analyze
Prepare statements and supporting detail for the tax assessment.
Adjust
Tax professionals apply the statutory adjustments and filing process, outside or alongside approved specialist tools.
Benefits
What chief accountants, tax teams and group finance gain
For chief accountants
Books and period-end statements ready for tax analysis, without reconstructing income and expense records from several applications or chasing year-end reconciliation delays.
For tax teams and advisers
Supporting income, expense and fixed asset detail to review before deciding adjustments, instead of working from incomplete asset registers.
For group finance
Company-level accounts that stay readable across multiple entities, with intercompany records that support group-level financial analysis.
From the blog
Guides on UAE Corporate Tax
Article
Fixed Asset Depreciation in the UAE: Methods, Useful Lives and Corporate Tax Treatment
How UAE businesses depreciate fixed assets under IAS 16, and how Corporate Tax treats depreciation, disposals, revaluations and investment property.
Article
Audit-Ready Books: A Month-End Checklist for UAE and Saudi Finance Teams
A five-day month-end close checklist for UAE and Saudi finance teams, with VAT and e-invoicing steps, a worked bank reconciliation and evidence pack.
Corporate tax FAQs
Does HYP ERP calculate UAE taxable income automatically?
No. HYP ERP provides the accounting profit, ledger and asset records; tax-specific adjustments, exemptions and reliefs are determined by your finance team and tax advisers when they convert those records into taxable income.
Can HYP ERP file UAE corporate tax returns?
No. HYP ERP keeps the books and reports used to prepare corporate tax information; your business and its advisers complete the return and submit it through the applicable filing process.
Can finance teams review depreciation in HYP ERP?
Yes. HYP ERP fixed asset functions hold asset records, depreciation, disposals and the related accounting entries, so finance teams and tax advisers can review asset information during corporate tax preparation.
Does HYP ERP support corporate tax preparation for groups?
Yes. HYP ERP supports multi-company accounting, intercompany journals, account mapping and consolidation, so groups can review each entity's corporate tax records separately and also see the combined position.
Start corporate tax preparation from closed books
See how HYP ERP moves from period close to the statements your tax advisers review.