Discover the key requirements under UAE FTA Decision No. 4 of 2026 and learn how to maintain compliant accounting records and commercial records in the UAE with the guidance from Jaxa Chartered Accountants, a UAE FTA Tax Agent.
Strong record-keeping is at the heart of effective tax compliance in the UAE. Accounting records play a central role in establishing a business’s financial and tax position in the UAE. With the UAE’s tax framework becoming increasingly structured and technology-driven, businesses must adopt effective record-keeping practices to ensure financial records remain accurate, secure, accessible and properly documented for tax verification.
The issuance of UAE FTA Decision No.4 of 2026 on June 2, 2026, and its publication on August 20, 2026, mark a further development in the UAE’s tax administration framework. The decision sets out requirements for maintaining information contained in accounting and commercial records, placing greater emphasis on accuracy, completeness, accessibility and proper documentation.
For UAE businesses, accurate accounting and bookkeeping are essential for meeting UAE VAT and Corporate Tax compliance requirements. In this article, Jaxa Chartered Accountants, an FTA-approved tax agent in the UAE, explains key aspects of FTA Decision No 4 of 2026 and its implications for accounting and bookkeeping practices.
What is UAE FTA Decision No. 4 of 2026?
As part of the UAE’s evolving tax administration framework, the UAE FTA issued Decision No. 4 of 2026 on June 2, 2026, outlining specific requirements for maintaining accounting records and commercial books.
Key requirements for Businesses include:
- Record transactions accurately
- Document transactions with appropriate supporting evidence
- Ensure accounting information can be retrieved when required.
- Electronic records can be readily retrievable, assessed, and presented when required
- Financial information remains secure and reliable
- Transactions can be traced through a clear audit trail
- Ensure records are aligned with UAE VAT and Corporate Tax regulations.
- Preparing records for potential UAE FTA verification
Why FTA Decision No. 4 of 2026 matters for UAE Businesses
Accounting records form the foundation of a company’s VAT and Corporate tax compliance.
The UAE FTA may need to examine accounting records to verify:
- Sales and revenue transactions
- Purchase and business expenses
- Taxable supplies and transactions
- Input and Output VAT
- Corporate tax computation
- Taxable income and adjustments
- Related -party and connected-person transactions
- Supporting invoices and documentations
- Tax registration and related information
Inaccurate, incomplete, or poorly maintained records can make it challenging for businesses to substantiate their tax position and respond effectively to a UAE FTA review.
What accounting records and commercial books should UAE Businesses maintain?
Accounting records and commercial books provide the foundation for a business’s financial reporting and tax compliance. These records should accurately capture business transactions and provide relevant documentation that can be retrieved when required.
Depending on the nature and activities of the business, relevant records may include:
- Financial statement
- Balance sheets and statements of financial position
- Profit and loss statements
- General ledger and trial balances
- Other relevant financial reports
- Sales and purchase records
- Sales invoices and credit notes
- Purchase invoices
- Receipts and payment records
- Records of revenue and business expenditure
- Payroll and employee records
- Salary and wage records
- Payroll documentation
- Other relevant employment-financial records
- Fixed asset records
- Details of assets acquired or disposed of
- Purchase documentation
- Depreciation records
- Supporting records for asset-related documentation
- Inventory records
- Inventory quantities and values
- Stock movement records
- Purchase and sales records relating to inventory
- Stock-count documentation
- Supporting business documents
- Contracts and agreements
- Invoices and receipts
- Bank records
- Bank correspondence
- Licences and related documents
- VAT and Corporate tax record
- VAT return calculation and supporting records
- Input and output VAT documentation
- Corporate tax computation
- Supporting records for taxable income and expenses
Electronic Accounting Records: Key Consideration for UAE Businesses
With businesses increasingly relying on digital accounting systems, electronic record-keeping in the UAE has become an important part of maintaining compliant accounting records and commercial books. Digital accounting records should be maintained accurately and securely, with the information remaining accessible for review when needed.
According to the UAE tax-record keeping framework, electronic accounting records should:
- Keep accounting information accurate and complete
- Ensure records remain accessible and readable
- Comply with applicable record-retention requirements
- Maintain a clear and traceable audit trail
- Support UAE VAT and Corporate Tax compliance and verification
For businesses using a digital accounting system, maintaining accurate, accessible, and traceable financial records is essential. Maintaining reliable digital records is important for supporting UAE VAT and Corporate tax compliance.
What does FTA Decision No. 4 of 2026 mean for Digital bookkeeping
As accounting in the UAE moves increasingly digital, businesses need to pay attention not only to how transactions are recorded, but also to how financial information is managed and retrieved. This is particularly relevant for companies leveraging cloud accounting, ERP systems or outsourced accounting and bookkeeping services in the UAE
Businesses should review whether their current processes:
- Make financial records easy to access and retrieve
- Keep supporting documents well organized
- Preserve historical accounting information
- Maintain clear access to records when bookkeeping is outsourced
- Provide reliable information for UAE VAT and Corporate tax reporting
- Allow the business to respond efficiently to UAE FTA information requests.
A well-structured digital bookkeeping process can help businesses make better financial decisions while staying prepared for evolving UAE Tax compliance requirements.
UAE Accounting Record Retention requirements
Proper retention of accounting and tax records is an essential part to maintaining UAE tax compliance. Businesses should identify the applicable retention period based on the type of record and relevant tax legislation.
Under the Tax Procedure framework, taxable persons are required to retain relevant accounting records and commercial books for at least 5 years following the end of the relevant tax period.
For UAE corporate tax, relevant records and documents must generally be retained for 7 years following the end of the relevant tax period.
Businesses should also preserve records where additional retention requirements may apply, including:
- UAE FTA tax audits
- Tax disputes or appeal
- Voluntary disclosure or correction
- Pending tax-related proceedings
- Any pending matter for which the records may be required
UAE FTA Requirement for Electronic Copies and Photocopies
UAE FTA Decision No. 4 of 2026 requires electronic copies and photocopies of accounting records and commercial books to accurately reproduce the information contained in the original documents.
The requirements include:
- Complete and identical copy: The electronic copy or photocopy must contain all data and details included in the original document.
- Pages in the original sequence: Every page must be included and retained in the same order as the original.
- No partial scanning: Scanning or copying only part of a document is not accepted.
- Clear and legible records: The copies must have sufficient quality and resolution to ensure that all information remains clear and legible.
- Electronic readability: An electronic copy must remain legible when displayed on a computer screen.
- Photocopy durability: For photocopies, the paper and ink should be suitable to prevent fading during the applicable record-retention period.
- Black-and-white copies: A black-and-white photocopy of a coloured document may be retained where all data and details remain clearly legible.
In practical terms, businesses should ensure that scanned and photocopied records remain complete, legible, and consistent with the original documents.
UAE FTA Access to Accounting Records and Commercial Books
Under Article 3 of FTA Decision No. 4 of 2026, businesses must ensure that accounting records and commercial books maintained as electronic copies or photocopies can be accessed by the FTA Authority upon request.
- FTA Access upon request: Businesses must provide the FTA with access to retained accounting records and commercial records when requested.
- Password-protected or encrypted records: Where electronic records or storage systems are protected by passwords or encryption, the person maintaining the records must provide the necessary passwords or encryption keys to enable UAE FTA access.
- Photocopies: Where records are maintained as photocopies, access must be provided to the locations where those records are stored.
- Records remain available: Both electronic copies and photocopies must be accessible upon request in accordance with the Decision.
These requirements reinforce the need for businesses to maintain accessible and properly organized accounting records throughout the applicable record-keeping period.
Outsourcing the maintenance of Accounting Records and Commercial Records
Under Article 4 of UAE FTA Decision No. 4 of 2026, businesses may appoint a third party to maintain their accounting records and commercial books.
However, outsourcing the record-keeping role does not transfer the business’s legal responsibility. The business remains responsible for:
- Proper maintenance of its accounting records and commercial books.
- Ensuring the safety and preservation of the records
- Meeting the applicable record-keeping requirements, even where a third party manages the records
- Maintaining access to the records when required by the Authority
This provision is relevant to businesses that use outsourced accounting or bookkeeping services in the UAE, as they ensure that a service provider may manage the day-to-day record-keeping process, but the responsibility for compliance remains with the business.
UAE FTA Decision No. 4 of 2026: Implementation Timeline and Compliance Requirement
UAE Decision No. 4 of 2026 came into effect on 30 July, 2026, following its publication in the official Gazette.
Businesses are advised to assess their record-keeping processes and ensure that both electronic and physical records are properly complete, accurate, readable, accessible, and adequately protected throughout the required retention period.
As this summary is based on an unofficial English translation, the official Arabic text and subsequent UAE FTA guidance should be referred to for the definitive requirement.
What should UAE Businesses Do Now?
UAE FTA Decision No. 4 of 2026 provides an opportunity for businesses to review their accounting, bookkeeping, and record-keeping practices.
Key steps include:
- Review the accounting system for proper record maintenance and retrieval.
- Organize supporting documents and link them to transactions
- Check record-retention policies for UAE VAT and Corporate Tax.
- Review outsourced accounting and bookkeeping arrangements to ensure continued access to records
- Prepare for UAE FTA verification by having the records accurate, complete, and readily accessible.
- Ensure electronic copies and photocopies accurately contain all information from the original and remain clear and legible.
A structured record-keeping process can help businesses strengthen UAE tax compliance and respond efficiently to UAE FTA requests.
Common Accounting and Record-Keeping Mistakes UAE Businesses Should Avoid
- Incomplete accounting records
- Missing information from electronic copies or photocopies
- Partial scanning of original documents
- Poor-quality or illegible copies
- Failure to follow applicable record-retention periods
- Failure to provide access to electronic records
- Inadequate maintenance of records by third-party service providers
Jaxa Chartered Accountants: Your Accounting, Bookkeeping, and Tax Partner in the UAE
With 19+ years of excellence, Jaxa Chartered Accountants is a trusted accounting and bookkeeping firm in the UAE and a certified UAE FTA tax agent, delivering integrated financial and tax services to businesses across the Emirates.
Our services:
- Accounting & Bookkeeping in the UAE
- Corporate Tax Filing and Registration in the UAE
- VAT return filing & compliance in the UAE
- UAE FTA-approved tax agent services
- Financial statement preparation services in the UAE
- Audit and Assurance in the UAE
- UAE FTA audit support
As an FTA tax agent in the UAE, Jaxa combines practical accounting expertise with up-to-date knowledge of UAE tax requirements to help businesses maintain accurate financial records and meet their compliance obligations.
Accurate Accounting. Compliant Tax. Confident Business Decisions.
Speak to Jaxa Auditors today and strengthen your UAE tax compliance.
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