Contact Us!

How Long Should You Keep Business Records in UAE?

Many businesses aren’t sure how long records must be saved in the paperless era. Record-keeping is a boring, but important business activity, and if you make the wrong choices, you risk litigation, succession planning problems and the wrath of the tax man. Understanding how long should you keep business records will help you avoid these problems.

How Long You Should Keep Your Accounts in the UAE
  • As per the federal law 2015 Articles 25 in the UAE every company shall keep accounting records showing its transactions to accurately reveal at any time the financial position of the company and enabling the partners or shareholders to confirm that the accounts of the company are properly kept in accordance with the provisions of this Law.
  •  Every company shall keep its accounting books in its head office for a period of at least 5 (five) years from the end of the financial year of the company.
  • The company may keep an electronic copy of the original the documents and records kept and deposited therein in accordance with the controls issued by a Ministerial Decision.

Specific Documents

  • Business Tax Returns and supporting records must be kept until the IRS can no longer audit your return. In most cases, the IRS can audit you for three years after a filing, but that time period extends to six years if the IRS suspects you made a “substantial error” on your return.
  • Payroll tax records, including time sheets, wages, pension payments, tax deposits, benefits and tips must be kept for at least four years after the date the taxes fell due or the date you actually paid them, whichever is later.
  • Current employee files should be retained for at least seven years after an employee leaves, is terminated or retires. However, if an employee suffers a work-related accident or files a claim against the business, it’s advisable to retain your records for up to 10 years after the claim is resolved.
  • Job applicant information must be kept for at least three years, even if you didn’t hire the applicant.
  • Ownership Records, such as business formation documents, annual meeting minutes, by-laws, stock ledgers and property deeds, should be retained permanently.
  • Accounting Services Records should be retained for a minimum of seven years. Accountants, being a conservative bunch, will often recommend that you keep financial statements, check registers, profit and loss statements, budgets, general ledgers, cash books and audit reports permanently.
  • Operational Records, including bank account statements, credit card statements, canceled checks, cash receipts and check book stubs, follow the seven year rule.

These periods are not offered as final authority, but as a guide. Your CPA, outsourced accounting service or tax attorney may recommend a different approach based on the rules of your industry and the specific needs of your business.

Audit Firms in Dubai

Auditing does not need to be an unwanted process. With one of the top audit firms in Dubai, like Alya Auditors., you can be sure that your audit process will not be as tedious or tensed as what you have been accustomed to.

There have been a number of companies from various industries that Alya Auditors auditors in Dubai have audited. We have experience and knowledge in our sleeves.

You can contact us today and book a free consultation with one of our auditors in Dubai for you to find out more about the audit.