UAE companies are required to maintain proper financial records. With the introduction of Corporate Tax in 2023, these requirements have become more critical. Here is the complete 2025 guide.
UAE Accounting Requirements Overview
Before Corporate Tax (pre-2023): UAE companies were required to maintain accounting records, but enforcement was limited. After Corporate Tax (2023+): UAE CT law requires all UAE entities in scope to maintain financial records for 7 years after the financial year end. FTA (Federal Tax Authority) can audit these records. Companies subject to VAT: additional 5-year record-keeping requirement for VAT purposes. Total effective record-keeping: 7 years for CT purposes (which encompasses the 5-year VAT requirement).
Accounting Standards in the UAE
Most UAE companies use IFRS (International Financial Reporting Standards) or IFRS for SMEs. Listed UAE companies: must use full IFRS. Private UAE companies: IFRS for SMEs is acceptable. Some industries (banking, insurance) have sector-specific accounting standards. UAE does not have its own GAAP — IFRS is the effective standard.
Accounting Software Options for UAE Businesses
Popular accounting software for UAE businesses in 2025: Zoho Books (strong UAE adoption, affordable, IBAN-compatible UAE bank feeds), QuickBooks Online (widely used internationally, UAE bank connections available), Xero (popular with professional services and tech companies, strong UAE accountant community), TallyPrime (dominant in South Asian-owned UAE businesses, strong inventory management), and Sage Business Cloud (enterprise-grade, larger UAE companies). VAT compliance: all major accounting software supports UAE VAT filing (VAT return generation for FTA portal upload).