UAE Records Review Before Corporate Tax Filing

Are your accounting records actually ready for a UAE Corporate Tax return, or are you relying on a trial balance that has not been properly reviewed?

A Corporate Tax return is only as reliable as the financial records behind it. Missing transactions, unreconciled balances, incorrectly classified expenses, or unsupported adjustments can affect the calculation of taxable income.

The Federal Tax Authority (FTA) requires Taxable Persons to maintain records and documents that support the information reported in their Corporate Tax returns and enable taxable income to be determined. These records generally need to be retained for at least seven years after the end of the relevant Tax Period.

A proper UAE Corporate tax records review before CT filing should therefore go beyond checking whether the bookkeeping software shows a completed year. The purpose is to establish whether the accounting records are complete, reconciled, supported, and suitable for the Corporate Tax computation.

Why Review Records Before Filing a UAE Corporate Tax Return?

The UAE Corporate Tax calculation starts with accounting income and then applies the adjustments required under the Corporate Tax Law.

The FTA explains that taxable income is generally based on the accounting net profit or loss after adjustments for items specified under the Corporate Tax Law. These can include non-deductible expenditure, exempt income, certain related-party transactions, unrealized gains or losses where relevant, tax-loss relief, and other applicable adjustments.

This means a business should not move directly from an unreviewed trial balance to the CT return. A pre-filing records review helps identify accounting issues before they affect the tax computation.

Records Review Before CT Filing UAE: What Should Be Checked?

A practical review should cover the main accounting records and supporting documents for the relevant Tax Period.

1. Review the Trial Balance

The trial balance provides the starting point for reviewing the company’s accounting records.

Check whether:

• All relevant income accounts are included
• Expense accounts are properly classified
• Bank balances appear reasonable
• Receivables and payables are up to date
• Fixed assets are recorded correctly
• Loans and other liabilities are reconciled
• Equity and retained earnings balances are reasonable
• Suspense or clearing accounts have been investigated
• Unusual year-end journal entries have been reviewed

A trial balance should not simply be accepted because the debits and credits balance. The individual balances should also make commercial and accounting sense.

2. Reconcile Bank Accounts

Bank reconciliation is an important part of a trial balance review UAE businesses should complete before preparing their CT computation.

Compare the accounting records with the company’s bank statements and investigate:

• Unrecorded bank transactions
• Duplicate entries
• Outstanding payments
• Unidentified receipts
• Bank charges
• Transfers between accounts
• Unusual transactions close to year-end

A bank balance that has not been reconciled can affect both income and expenses reported in the accounts.

3. Review Accounts Receivable

Review customer balances before finalizing the accounting figures.

Check:

• Outstanding invoices
• Credit notes
• Customer advances
• Long-outstanding balances
• Bad debts
• Receipts posted after year-end
• Unusual customer balances

The purpose is to confirm that revenue and receivable balances are supported by the underlying transactions.

4. Review Accounts Payable

Supplier balances should also be reviewed before the CT computation.

Look for:

• Unrecorded supplier invoices
• Duplicate bills
• Supplier advances
• Credit notes
• Old outstanding balances
• Expenses recorded in the wrong period
• Payments made but not properly allocated

This can help identify expenses that have been missed or incorrectly classified.

5. Check Revenue and Other Income

Revenue should be reviewed against the underlying accounting records.

Consider whether:

• Sales have been completely recorded
• Credit notes have been accounted for
• Revenue has been recorded in the correct period
• Other income has been properly classified
• Significant unusual income entries have supporting documents
• Related-party income has been identified where applicable

The FTA has specifically highlighted the importance of maintaining records of transactions during the Tax Period so that revenue and taxable income can be verified.

6. Review Business Expenses

Not every accounting expense necessarily receives identical treatment for Corporate Tax purposes.

Review significant expense categories and identify items that may require tax adjustments.

Check areas such as:

• Business and personal expenditure
• Entertainment expenses
• Fines and penalties
• Donations
• Related-party expenses
• Interest expenses
• Depreciation
• Provisions and impairments
• One-off or unusual expenses

The FTA states that legitimate business expenses incurred to derive taxable income are generally deductible, although specific rules and limitations can apply.

The accounting treatment should therefore be reviewed before deciding how an expense is treated in the CT computation.

7. Review Fixed Assets

A fixed asset review should form part of the pre-filing process.

Check the:

• Fixed asset register
• Asset purchases
• Asset disposals
• Depreciation
• Capitalised costs
• Disposal proceeds
• Supporting invoices

The FTA has identified an asset record, including details of asset purchases and disposals, as one of the essential records that Taxable Persons may need to maintain.

This makes the fixed asset register an important document when reviewing the accounts before filing.

8. Review Liabilities and Loans

Liability balances should also be checked.

Review:

• Trade payables
• Bank loans
• Director or shareholder balances
• Accrued expenses
• Provisions
• Lease liabilities where applicable
• Other outstanding obligations

The FTA specifically includes records of liabilities among the records that Taxable Persons should maintain.

Unusual or unsupported liability balances should be investigated rather than carried forward automatically.

9. Check Related-Party and Connected-Person Transactions

Businesses should identify transactions involving related parties and Connected Persons before preparing their CT return.

Review transactions such as:

• Payments to related companies
• Management fees
• Director remuneration
• Intercompany transactions
• Loans between related entities
• Shared-service charges
• Other transactions involving Connected Persons

The FTA confirms that transfer pricing rules apply to UAE businesses with transactions involving Related Parties and Connected Persons, including transactions with parties in the UAE mainland, Free Zones, or foreign jurisdictions.

A records review can therefore help identify transactions that require additional consideration before filing.

10. Check Tax Adjustments

Once the accounting records have been reviewed, identify the adjustments required to move from accounting income to taxable income.

The FTA describes this as a two-stage process: determine accounting income and then apply the relevant adjustments to arrive at taxable income.

Depending on the business and Tax Period, the review may need to consider:

• Exempt income
• Non-deductible expenses
• Unrealised gains or losses where applicable
• Related-party transactions
• Tax losses
• Tax reliefs or incentives
• Other adjustments required under the Corporate Tax rules

The key point is that these adjustments should be based on reviewed accounting figures and supporting documentation.

11. Check Supporting Documents

A tax computation should be supported by appropriate accounting records.

Before filing, check whether important balances and transactions can be supported by documents such as:

• Sales invoices
• Purchase invoices
• Bank statements
• Contracts
• Credit notes
• Debit notes
• Payroll records
• Asset purchase documents
• Loan agreements
• Related-party agreements
• Accounting schedules
• Other relevant transaction records

The FTA has reiterated that Taxable Persons must retain documents supporting information provided in their Tax Returns.

12. Review the Records Retention Period

Corporate Tax records should not simply be discarded after the return is filed.

Under Article 56 of the Corporate Tax Law, Taxable Persons must maintain relevant records and documents for seven years following the end of the Tax Period to which they relate.

This includes records that support information provided in a Tax Return and records that allow taxable income to be determined.

Businesses should therefore have a clear document-retention system before closing the Tax Period.

13. Compare the Final Numbers With Prior Periods

A year-on-year comparison can highlight unexpected accounting movements.

For example, investigate:

• Large increases in revenue
• Significant changes in gross margins
• Unusual expense increases
• Major changes in receivables
• Large movements in liabilities
• New related-party balances
• Significant asset purchases or disposals

This does not mean that every unusual movement is incorrect. The purpose is to identify figures that require explanation or additional documentation before filing.

14. Check the Corporate Tax Filing Deadline

The records review should be completed well before the CT filing deadline.

The FTA states that Taxable Persons must generally submit their Corporate Tax return and settle the Corporate Tax due within nine months from the end of the relevant Tax Period.

For example, the FTA confirmed that businesses with a Tax Period ending 31 December 2025 were required to file and pay by 30 September 2026.

This makes an early records review particularly useful. Waiting until the filing deadline approaches can leave little time to correct bookkeeping errors or obtain missing supporting documents.

UAE Corporate Tax Records Review Checklist

Use this checklist before finalizing the CT computation:

Review area	Check
Trial balance	☐
Bank reconciliations	☐
Accounts receivable	☐
Accounts payable	☐
Revenue and other income	☐
Business expenses	☐
Fixed assets	☐
Liabilities and loans	☐
Related-party transactions	☐
Connected Person transactions	☐
Tax adjustments	☐
Supporting documents	☐
Tax losses and reliefs	☐
Prior-period adjustments	☐
Records retention	☐
Final CT computation review	☐

Common Problems Found During a Pre-CT Records Review

Some issues may not be obvious from a basic trial balance.

Common examples include:

• Unreconciled bank accounts: The accounting system may show a bank balance that does not agree with the actual bank statement.
• Old receivables and payables: Long-outstanding balances may remain in the ledger without adequate explanation or supporting records.
• Personal expenses recorded as business expenses: Owner or director transactions can sometimes be posted to business expense accounts without proper classification.
• Missing supporting documents: An expense may appear in the accounts even though the underlying invoice or supporting documentation cannot be located.
• Incorrect classification: Capital expenditure, loans, advances, deposits, and other balances may be incorrectly recorded as ordinary business expenses or income.
• Unidentified related-party transactions: Transactions with owners, directors, group companies, or other related parties may not be separately identified during routine bookkeeping.

These issues are easier to address before the CT return is finalized rather than after filing.

How a Compliance Review Supports CT Filing

A structured compliance review can provide an additional layer of checking before the Corporate Tax return is prepared.

The review can connect the accounting records with the CT requirements by examining:

1. Whether the books are substantially complete.
2. Whether key accounts have been reconciled.
3. Whether significant transactions have supporting documentation.
4. Whether potential tax adjustments have been identified.
5. Whether related-party and Connected Person transactions require further review.
6. Whether the records required to support the CT return are available.

The FTA’s current legislation also includes FTA Decision No. 4 of 2026, which sets out rules and requirements for maintaining information contained in accounting records and commercial books. The decision was published on 20 August 2026.

When Should You Review Your Records Before CT Filing?

Ideally, the review should begin before the filing deadline rather than during the final days of the filing period.

A practical sequence is:

Bookkeeping completion → Account reconciliation → Trial balance review → Supporting-document review → Tax adjustment review → CT computation → Final filing review

This approach gives the business time to investigate discrepancies and correct accounting records before the Corporate Tax return is submitted.

UAE Compliance Review Support

Preparing a Corporate Tax return from incomplete or unreconciled accounting records can make the filing process more difficult.

Ripple Accounting, Tax & Advisory can help businesses review their accounting records and identify areas that may need attention before Corporate Tax filing.

For businesses that need help connecting bookkeeping records with their CT filing requirements, a compliance review can provide a structured pre-filing assessment.

Need to check whether your records are ready for Corporate Tax filing? Request a free consultation or send a WhatsApp enquiry to discuss the scope and pricing.

• Email: info@uaetaxcompliance.ae 
• Phone: +971 52 356 5409
• WhatsApp: +971 4 250 0833

FAQs

1. What should be reviewed before filing a UAE Corporate Tax return?

Businesses should review the trial balance, bank reconciliations, receivables, payables, revenue, expenses, fixed assets, liabilities, related-party transactions, supporting documents, and relevant tax adjustments before finalizing the CT computation.

2. How long should UAE Corporate Tax records be kept?

Taxable Persons generally need to maintain relevant Corporate Tax records and documents for seven years following the end of the Tax Period to which they relate.

3. Why is a trial balance review important before Corporate Tax filing?

The trial balance provides the accounting figures used as the starting point for determining accounting income. Reviewing it can help identify unreconciled balances, classification issues, unusual transactions, and missing records before the tax computation is prepared.

4. What records does the FTA expect businesses to maintain?

The FTA has highlighted records such as transaction records, asset records including purchases and disposals, liability records, and records of shares or ownership interests, along with other documentation needed to support the Tax Return and taxable income.

5. How long after the end of the Tax Period is the UAE Corporate Tax return due?

Taxable Persons generally have up to nine months from the end of the Tax Period to file their Corporate Tax return and settle the Corporate Tax due.

Conclusion

A records review before CT filing UAE businesses should complete is more than a quick check of the trial balance. It involves reviewing reconciliations, income, expenses, assets, liabilities, related-party transactions, supporting documents, and potential tax adjustments. The FTA requires Taxable Persons to maintain records supporting their Tax Returns and taxable income, with relevant records generally retained for seven years. Completing this review before the CT computation gives businesses an opportunity to identify accounting gaps, resolve discrepancies, and organize supporting documentation before filing.

Disclaimer: This article provides general information about UAE Corporate Tax record reviews and should not be treated as tax, accounting, or legal advice. Corporate Tax treatment can vary depending on the business, transactions, accounting method, and applicable legislation. Businesses should verify the current UAE requirements and obtain professional advice where appropriate.