# Accounting, bookkeeping and audit Running your company · Dubai Setup Index > Which records a UAE company keeps and for how long, which accounting standard applies, when tax law, company law or the free zone requires an audit, and how e-invoicing changes invoicing from 2027. - Canonical: https://dubaisetupindex.com/guides/accounting-bookkeeping-and-audit - Updated: 2026-10-12 - Method: https://dubaisetupindex.com/methodology ## Records and how long to keep them Every UAE company keeps accounting records and commercial books that show its transactions and its financial position. The Commercial Companies Law sets this for mainland companies, and the Tax Procedures Law applies it to any person carrying on business, whether or not it is registered for VAT or corporate tax. Retention depends on the rule. The Commercial Companies Law sets at least five years from the end of the financial year. Tax Procedures rules set five years after the tax period, with four extra years during a dispute or tax audit. Corporate tax sets seven years after the end of the tax period for records that support a return or show taxable income, and this overrides the general five-year tax rule for those records. Records may be kept electronically if they can be produced and read when the Federal Tax Authority asks. Returns and documents are submitted in Arabic unless the FTA accepts English; the FTA can ask for a certified Arabic translation at the company's cost. Free zones add their own rules. ADGM requires accounting records for ten years, DIFC for six years, and Meydan requires licensees to keep all documents for seven years. ## Financial statements, accounting standards and currency Corporate tax starts from standalone financial statements prepared under IFRS. A business whose revenue does not exceed AED 50 million may use IFRS for SMEs, and one whose revenue does not exceed AED 3 million may prepare its statements on a cash basis. These are permissions, not required bands. The first financial year of a mainland company runs between six and 18 months from its commercial registration; later years run 12 months. JAFZA and RAKEZ apply the same six-to-18-month range, and Meydan and DIFC cap the first year at 18 months. The corporate tax period follows the financial year, and changing it needs an FTA application. Books can be kept in a currency other than the dirham. Corporate tax amounts are converted to AED at Central Bank rates: the spot rate on the transaction date where practical, otherwise the monthly average, otherwise the annual average, using one method for the whole period and keeping a record of why it was chosen. VAT invoices show the payable amount and the tax in AED. ## When an audit is required Corporate tax requires audited financial statements in two cases: a taxable person with revenue above AED 50 million in the tax period, and every Qualifying Free Zone Person at any revenue level. Tax groups prepare audited special-purpose statements. A company below AED 50 million that is not claiming qualifying free-zone status has no audit duty under this tax rule. Company law is a separate test. Every mainland limited liability company and joint-stock company must appoint an auditor and have its accounts audited every year, whatever its revenue. Free zones set their own rules, and they differ. DMCC requires audited statements from a DMCC-approved auditor within six months of year-end. RAKEZ requires audited statements from a RAKEZ-approved auditor within six months, with an AED 2,500 fine if late. JAFZA requires an annual audit report for FZEs and FZCOs. IFZA asks for financial statements at every renewal: a simplified statement if turnover is AED 3 million or less and the company had nine or fewer employees throughout the year, otherwise audited statements. Meydan requires audited statements within 30 days when the Authority asks. ADGM and DIFC apply company-law audit regimes with small-company exemptions. In ADGM the exemption needs turnover of USD 13.5 million or less and no more than 35 employees, and a company claiming qualifying free-zone status still needs audited accounts. In DIFC a private company with turnover of USD 5 million or less and no more than 20 shareholders can skip the audit unless its articles or its shareholders require one. ## VAT invoices and returns A VAT-registered business issues a tax invoice within 14 days of the date of supply. A full tax invoice shows the words "Tax Invoice", the supplier's and (if registered) the customer's name, address and TRN, a sequential number, the issue and supply dates, a description, unit price, quantity, rate, discount and the tax in AED. VAT records cover supplies and imports, invoices and credit notes issued and received, exports, adjustments and a tax record. The VAT return is due by the 28th day after the end of each tax period. The VAT guide covers registration and rates. ## E-invoicing from 2027 The UAE e-invoicing system applies to business-to-business and business-to-government transactions by any person doing business in the UAE, whether or not it is VAT-registered. Sales to consumers are outside scope for now. Each business appoints one Accredited Service Provider from the Ministry of Finance list for both sending and receiving invoices, and the provider reports invoice data to the FTA. Businesses with revenue of AED 50 million or more must appoint a provider by 30 October 2026 and go live by 1 January 2027. Businesses with revenue below AED 50 million must appoint a provider by 31 March 2027 and go live by 1 July 2027. Revenue is measured from the most recent financial statements. Any business could join voluntarily from 1 July 2026. E-invoices are structured XML files in the PINT-AE format exchanged over the Peppol network. They are issued within 14 days of the transaction, and VAT registrants keep the VAT-law timeline. A tax invoice is still required; while a customer is not yet on the system, a separate tax invoice such as a PDF is also needed. Missing the go-live or provider deadline carries AED 5,000 for each month of delay. Each e-invoice or e-credit note not sent in time carries AED 100, capped at AED 5,000 a month. ## A first-year compliance sequence After the licence: open a business bank account and start bookkeeping from the first transaction. A company incorporated on or after 1 March 2024 applies for corporate tax registration within three months. VAT registration is due within 30 days of crossing the mandatory threshold. During the year: keep invoices, contracts and bank records in the bookkeeping system, issue tax invoices within 14 days if VAT-registered, and file VAT returns by the 28th day after each period. Businesses below AED 50 million appoint an e-invoicing provider by 31 March 2027. After year-end: prepare financial statements under the applicable standard, have them audited where tax law, company law or the free zone requires, and meet the zone's filing deadline, for example six months in DMCC and RAKEZ. The corporate tax return is filed, and any tax paid, within nine months of the end of the tax period. ## Penalties for missing records and invoices Failing to keep required records carries AED 10,000 per violation and AED 20,000 for a repeat within 24 months, under both the corporate tax and the general tax-procedures penalty schedules. Failing to provide records in Arabic when the FTA asks carries AED 5,000. A late corporate tax return carries AED 500 a month for the first year and AED 1,000 a month after that. Late corporate tax or VAT payment carries 14% a year, charged monthly. A late VAT return carries AED 1,000, or AED 2,000 for a repeat within 24 months, and each tax invoice or credit note not issued in time carries AED 2,500. ## Confirm for your case Match these requirements to your entity, activity and authority. This guide does not establish an applicant-specific approval, complete cost or end-to-end timeline. ## Sources - [Federal Decree-Law 32/2021 on Commercial Companies](https://uaelegislation.gov.ae/en/legislations/1542) - [Federal Decree-Law 47/2022 on Corporate Tax](https://uaelegislation.gov.ae/en/legislations/1582) - [Federal Decree-Law 28/2022 on Tax Procedures](https://uaelegislation.gov.ae/en/legislations/1625) - [Cabinet Decision 74/2023, Tax Procedures Executive Regulation](https://uaelegislation.gov.ae/en/legislations/2160) - [Federal Decree-Law 8/2017 on VAT](https://uaelegislation.gov.ae/en/legislations/1227) - [Cabinet Decision 52/2017, VAT Executive Regulation](https://uaelegislation.gov.ae/en/legislations/1226) - [Ministerial Decision 84/2025 on audited financial statements](https://mof.gov.ae/wp-content/uploads/2025/04/Ministerial-Decision-No.-84-of-2025-on-Audited-Financial-Statements.pdf) - [Ministerial Decision 114/2023 on accounting standards](https://mof.gov.ae/wp-content/uploads/2023/05/Ministerial-Decision-No.-114-of-2023-on-the-Accounting-Standards-and-Methods-for-Corporate-Tax-Purposes.pdf) - [FTA Decision 13/2023 on currency conversion](https://tax.gov.ae/Datafolder/Files/Legislation/Federal-Tax-Authority/FTA%20Decision%20No.%2013%20of%202023%20on%20Determination%20of%20Conditions%20for%20Conversion%20of%20Amounts%20Quantified%20in%20a%20Currency%20other%20than%20AED%20-%20for%20publishing.pdf) - [FTA corporate tax registration timelines](https://tax.gov.ae/en/media.centre/news/federal.tax.authority.issues.public.clarification.on.registration.timelines.for.taxable.persons.for.corporate.tax.aspx) - [FTA VAT registration service](https://www.tax.gov.ae/en/services/vat.registration.aspx) - [Ministry of Finance e-invoicing programme](https://mof.gov.ae/einvoicing) - [Ministerial Decision 243/2025 on the e-invoicing system](https://mof.gov.ae/wp-content/uploads/2025/09/Ministerial-Decision-no.-243-of-2025-on-the-Electronic-Invoicing-System.pdf) - [Ministerial Decision 244/2025 on e-invoicing implementation](https://mof.gov.ae/wp-content/uploads/2025/09/Ministerial-Decision-No.-244-of-2025-on-the-Implementation-of-the-Electronic-Invoicing-System.pdf) - [Ministerial Decision 66/2026 amending Ministerial Decision 244/2025](https://mof.gov.ae/wp-content/uploads/2026/05/Ministerial-Resolution-No.-66-of-2026-Amending-Certain-Provisions-of-Ministerial-Resolution-No.-244-of-2025-Regarding-the-Implementation-of-the-Electronic-Invoicing-System-En-20260514.pdf) - [UAE Electronic Invoicing Guidelines](https://mof.gov.ae/wp-content/uploads/2026/06/UAE-Electronic-Invoicing-Guidelines_V-1.1-01June2026.pdf) - [Cabinet Decision 106/2025 on e-invoicing penalties](https://mof.gov.ae/wp-content/uploads/2025/12/Cabinet-Decision-Violations-and-Penalties-eInvoicing-final-version-en-8.12.25.pdf) - [Cabinet Decision 75/2023 on corporate tax penalties](https://mof.gov.ae/wp-content/uploads/2024/03/Cabinet-Decision-No.-75-of-2023-and-its-amendments-on-the-Administrative-Penalties-for-Violations-Related-to-the-Application-of-Federal-Decree-Law-No.-47-of-2022.pdf) - [Cabinet Decision 40/2017 on tax penalties, as amended](https://mof.gov.ae/wp-content/uploads/2025/11/Cabinet-Decision-No.-40-of-2017-and-its-amendments-v14.11.25.pdf) - [DMCC audited financial statements guideline](https://dmcc.ae/hubfs/website%20support%20documents/Guidelines-Audited%20Financial%20Statements%20Submission.pdf?hsLang=en) - [IFZA renewal financial statements FAQ](https://cdn.ifza.com/marketing/FAQs%20Update_.pdf) - [RAKEZ FAQs](https://rakez.com/en/faqs) - [JAFZA audit report submission](https://www.jafza.ae/resource-centre/guides/audit-report-submission-fze-fzco/) - [Meydan Free Zone Companies and Licensing Regulations](https://www.meydanfz.ae/wp-content/uploads/2023/01/MFZ-Companies-and-Licensing-Regulations.pdf) - [ADGM annual accounts](https://www.adgm.com/operating-in-adgm/obligations-of-adgm-registered-entities/annual-filings/annual-accounts) - [ADGM guidance on accounts for qualifying free zone persons](https://assets.adgm.com/download/assets/Guidance+on+accounts+and+audit+for+ADGM+QFZPs+20250825.pdf/79e4975c7cd011f0aee49a1bb17f55cc) - [DIFC Companies Law](https://assets.difc.com/v1/media/edge/images/dubaiintern0078-difcexperie96c5-production-3253/media/project/difcexperiences/difc/difcwebsite/documents/laws--regulations/companies_law.pdf) ## Machine-readable - [JSON](https://dubaisetupindex.com/data/guides/accounting-bookkeeping-and-audit.json) ## Citation Required when quoting any figure from this page. 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