UAE law requires a taxable person to keep their accounting records and commercial books for five years following the relevant tax period, and this period rises to seven years for real estate records. The period increases by four additional years where there is a dispute with the Federal Tax Authority or an unfinished tax audit.
The Basic Record-Keeping Periods
The Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures requires "keeping and maintaining all accounting records, commercial books and information... for the following periods unless the Tax Law provides otherwise":
- "For a period of five (5) years following the tax period to which they relate, for the taxable person."
- For 5 years from the end of the calendar year in which the document was created, for all other persons who are not taxable persons.
- "For a period of seven (7) years from the end of the calendar year in which the relevant document was created, in respect of real estate records."
Additional Periods in Special Cases
In addition to the basic periods, the law requires records to be kept for additional periods in specific cases, including that a person keep their records "for an additional period of four (4) years or until the dispute is finally settled, whichever is later, in the event of a dispute between the Authority and the person regarding their tax obligations," and likewise where the person is subject to an unfinished tax audit, or has been notified of the Authority's intention to conduct an audit before the basic period expires. One additional year is also added for a person who submits a voluntary disclosure in the fifth year from the end of the relevant tax period.
The Legal Representative's Obligation
The obligation to keep records extends to the taxable person's legal representative, who must keep the records and books of the person they represent for one additional year from the date on which that legal representation ends.
How Records May Be Kept
The law does not necessarily require keeping only original paper documents; the obligation to keep accounting records and commercial books is also met by creating a record while retaining the original documents supporting the entries made in it, or by other means specified in the Executive Regulation.
Why These Periods Matter
These periods determine how long the Federal Tax Authority may request access to records during a tax audit, and a failure to keep the required records is itself one of the violations that triggers an administrative penalty under the same law. This means that the end of the basic retention period does not necessarily mean records may be disposed of immediately, since it is first necessary to check whether any of the additional periods linked to a dispute, an ongoing tax audit, or a recent voluntary disclosure still apply.
Who Must Comply With These Periods?
The obligation to keep records is not limited to the taxable person alone; it also extends to every person who has an obligation under the Tax Law, although for persons who are not taxable persons the retention period is calculated from the date the document was created rather than from the tax period. It is advisable to review these periods regularly when setting a document archiving policy within any commercial establishment in the UAE.
Legal References
- Federal Decree-Law No. (28) of 2022 on Tax Procedures — Article (24).
- Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures — Article (3), Article (4).
For questions about your specific situation, you can ask the UAE Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.