Essential Accounting Compliance Checklist for UAE Businesses

Maintaining accounting compliance in the UAE requires attention to multiple regulatory requirements. This comprehensive checklist ensures your business meets all necessary standards and avoids costly penalties.

1. Corporate Tax Compliance

Register for Corporate Tax within required timeframe
Maintain accurate records of all transactions
Prepare financial statements in accordance with accepted standards
File tax returns within 9 months of tax period end
Keep documentation for at least 7 years
Apply for tax residency certificate if needed

2. VAT Compliance Requirements

Register for VAT if turnover exceeds AED 375,000
Issue tax invoices with all required information
Maintain VAT account and proper documentation
File VAT returns monthly or quarterly as applicable
Submit returns by the 28th of following month
Reconcile VAT output and input regularly
Keep VAT records for minimum 5 years

3. Financial Reporting Standards

UAE businesses must prepare financial statements following IFRS (International Financial Reporting Standards) or IFRS for SMEs, depending on their size and structure. Ensure your financial statements include:

• Statement of Financial Position (Balance Sheet)
• Statement of Comprehensive Income (Profit & Loss)
• Statement of Changes in Equity
• Statement of Cash Flows
• Notes to Financial Statements

4. Audit Requirements

Most UAE companies require annual audits by approved auditors. Mainland companies, free zone companies (depending on zone), and companies meeting certain revenue thresholds must conduct annual audits. Ensure you:

Appoint approved auditors annually
Provide all requested documentation to auditors
Address audit findings and recommendations
File audited financial statements with relevant authorities
Maintain audit trail for all financial transactions

5. Record Keeping Best Practices

Documents to Maintain

• All invoices (issued and received)
• Bank statements and reconciliations
• Contracts and agreements
• Payroll records
• Asset registers
• Stock/inventory records

Storage Requirements

• Minimum 5-7 years retention
• Both physical and digital acceptable
• Easily retrievable when needed
• Secure and backed up
• Organized by period/category

6. Economic Substance Regulations (ESR)

If your business conducts relevant activities (banking, insurance, investment fund management, lease-finance, headquarters, shipping, holding company, intellectual property, distribution and service center), you must comply with ESR requirements including maintaining adequate employees and premises, conducting core income-generating activities in UAE, and filing annual notifications and reports.

7. Ultimate Beneficial Owner (UBO) Declaration

All UAE companies must maintain an up-to-date UBO register identifying individuals who ultimately own or control the company. Update the register within 15 days of any changes and submit to relevant authorities as required.

Common Compliance Pitfalls to Avoid

⚠Missing filing deadlines due to poor calendar management
⚠Inadequate record keeping and documentation
⚠Misclassification of transactions for VAT purposes
⚠Failure to reconcile accounts regularly
⚠Not staying updated with regulatory changes
⚠Attempting compliance without professional guidance

Ensure 100% Compliance with Expert Support

Compliance requirements can be overwhelming, especially as regulations evolve. Our team stays current with all UAE accounting and tax regulations, ensuring your business maintains full compliance while you focus on growth. Let us handle the complexity so you can have peace of mind.

Essential Accounting Compliance Checklist for UAE Businesses