Record Retention in the UAE: What Financial Records to Keep and For How Long

Most founders treat record keeping as housekeeping until the Federal Tax Authority (FTA), a bank or a buyer asks for invoices from several years back and the files are scattered across email, laptops and a former accountant's cloud drive. A common assumption is that every document carries the same retention period. It does not. UAE law sets different minimums for different records, and recent changes have lengthened some of them.

What a Retention Policy Covers

A record retention policy is a written set of rules stating which financial and tax documents a company keeps, in what format, where they are stored and for how long. The law sets the minimum; the policy sets the working rule, including who owns each category and when records may be destroyed. A practical guide to record retention in the UAE sets out the requirements in more detail.

Which Records Must Be Kept

UAE companies must keep accounting books, general ledgers, financial statements, bank statements and reconciliations, supplier and customer invoices, credit notes, payroll records, contracts and supporting vouchers. VAT returns and corporate tax computations must be backed by source documents, so each figure can be traced to the transaction behind it. Records may be kept in Arabic or English, and documents in other languages may need translating if an authority requests them. Electronic storage is acceptable provided records remain complete, unaltered and retrievable when requested.

How Long Records Must Be Kept

Under Article 56 of Federal Decree-Law No. 47 of 2022 on Corporate Tax, taxable persons must keep the records supporting their returns for seven years from the end of the relevant tax period. VAT records, including tax invoices and credit notes, carry a standard minimum of five years, while records relating to real estate must be kept for up to 15 years, and capital asset records under the VAT capital assets scheme are commonly held for longer than the standard period. Because the clock runs from the end of the tax period, not from the date a document was created, an invoice that supports both a VAT return and a corporate tax return should in practice be kept for seven years.

Recent amendments have extended these periods in some cases. Since 1 April 2026, Cabinet Decision No. 17 of 2026 has required an additional two years of retention for tax periods linked to a refund claim that is still awaiting a decision. Separately, amendments to the Tax Procedures Law that took effect in January 2026 allow the FTA, in serious cases such as tax evasion or failure to register, to look back as far as 15 years. Anti-money laundering records follow the rules of the relevant supervisor, commonly a minimum of five years.

Obligations do not end when a company closes. Retention duties continue after deregistration or liquidation, so a named custodian should keep the records accessible rather than leaving them on a former accountant's system.

Building a Policy in Five Steps

A workable policy starts with an inventory of every record category and where each currently sits. Each category then receives a retention period based on law or contract terms, together with a named owner. The company chooses secure storage with access controls and backups, retaining originals where a counterparty or authority requires them. Disposal rules should allow destruction only once the period has ended and no audit, refund or dispute remains open. Finally, the policy should be reviewed annually and after any significant change in the business.

Many companies simplify the process by applying the longest applicable period as a single default. One rule is easier to train staff on and to defend.

Risks of Weak Record Keeping

Failing to keep required records can lead to FTA administrative penalties, and input VAT claims can be refused when valid supplier invoices are missing. Gaps also slow bank reviews, weaken a company's position in disputes and reduce buyer confidence during due diligence.

Conclusion

A record retention policy works when it is written down, owned and followed. Seven years covers most tax records, longer periods apply to real estate and open refund claims, and the longest applicable period is the safest default. Free zone status does not remove federal record keeping duties, so companies licensed through free zones such as Meydan Free Zone should store their digitally issued licensing documents alongside their financial records under the same policy.