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UAE Accounting & BookkeepingUpdated January 2026

9% Corporate Tax now applies above AED 375,000 Are your books audit-ready for the FTA?

The UAE's Corporate Tax regime requires IFRS-compliant records (International Financial Reporting Standards, the UAE's mandatory accounting format), 7-year document retention, and timely FTA (Federal Tax Authority) filings. With e-invoicing mandatory from 2027 and Small Business Relief ending December 2026, most growing businesses find professional accounting support the safest path to compliance.

Expert analysis of UAE accounting requirements with verified pricing from 50+ providers

Corporate Tax rates and thresholds verified with FTA
Real pricing from UAE-licensed accounting firms
Free Zone vs Mainland compliance differences explained

UAE Accounting & Bookkeeping: Complete Guide 2026

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Understanding UAE Accounting Services: From Basic Books to Statutory Compliance

The UAE Ministry of Finance and Federal Tax Authority (FTA) require all companies to maintain IFRS-compliant accounting records. Since the introduction of Corporate Tax in June 2023, proper bookkeeping has effectively become mandatory for most businesses. Understanding the different service levels helps you choose the right support for your business complexity and regulatory obligations.

Basic Bookkeeping

Transaction recording, bank reconciliation, and basic financial reports. Suitable for small businesses with simple operations and minimal regulatory requirements.

Management Accounting

Advanced reporting, budgeting, cash flow analysis, and business intelligence. Includes KPI (Key Performance Indicator) tracking and financial analysis for strategic decision-making.

Statutory Accounting

IFRS-compliant financial statements, Corporate Tax returns, and regulatory filings. Essential for companies above AED 375,000 profit threshold.

Company Secretarial

Board resolutions, share capital management, and corporate governance. Required for maintaining good standing with UAE authorities and Free Zone regulators.

The United Arab Emirates Accounting Framework

  • • Regulatory Body: The UAE Ministry of Finance and Federal Tax Authority (FTA) oversee accounting standards and tax compliance. Companies must follow IFRS standards and maintain records for 7 years minimum under Corporate Tax Law.
  • • Accounting Standards: UAE companies must use International Financial Reporting Standards (IFRS). Businesses with revenue ≤AED 50 million may use IFRS for SMEs. Cash basis accounting permitted only if revenue ≤AED 3 million.
  • • Audit Requirements: Audits are mandatory for companies with revenue exceeding AED 50 million or those claiming Qualifying Free Zone Person (QFZP) status for 0% Corporate Tax benefits. Most Free Zones also require audits for license renewal.

Why Professional Accounting Makes Sense for UAE Businesses

The UAE's regulatory landscape has transformed since Corporate Tax introduction in 2023. For most growing businesses, professional accounting support quickly becomes the safest and most cost-effective option.

9%

Corporate Tax Compliance Mandatory

Since June 2023, UAE businesses earning profits above AED 375,000 annually must pay 9% Corporate Tax. The FTA requires detailed records, proper documentation, and timely filing within 9 months of financial year-end.

AED 500+

Strict Filing Deadlines & Penalties

Late Corporate Tax filing incurs penalties of AED 500/month for the first 12 months, then AED 1,000/month thereafter. Late payment attracts 14% annual interest. Late registration penalty is AED 10,000.

7 Years

Audit Trail Protection

The FTA can request detailed records going back 7 years under Corporate Tax Law. Professional accounting ensures proper documentation and audit trails that protect you during tax investigations or compliance reviews.

2027

E-Invoicing Preparation

Mandatory e-invoicing via Peppol network (the international e-invoicing standard) starts January 2027 for businesses with revenue >AED 50M, and July 2027 for others. Your accounting systems must be ready for structured digital invoicing.

AED 10K+

Penalty Avoidance

Incorrect Corporate Tax calculations can result in additional assessments plus interest. Failing to maintain proper records carries penalties of AED 10,000 (first offense) to AED 20,000 (repeat). Professional services cost far less than potential FTA penalties.

AED 50M

Audit Requirements

Audited financial statements are mandatory for: companies with revenue >AED 50 million, Qualifying Free Zone Persons (QFZP) claiming 0% tax, and most Free Zone entities for license renewal regardless of revenue.

UAE Accounting Service Levels: From Startup to Enterprise

Basic Bookkeeping

AED 1,000–2,500/month

What's included: Transaction recording, bank reconciliation, basic P&L statements, expense tracking, supplier/customer management

Best for: Startups and small businesses under AED 375,000 annual profit with simple operations

Limitations: No Corporate Tax planning, no IFRS compliance, no audit preparation, limited financial analysis

Advantages: Affordable entry point, suitable for businesses below Corporate Tax threshold, covers basic compliance needs

Standard Accounting Package

AED 2,000–4,000/month

What's included: Full bookkeeping, Corporate Tax compliance, IFRS financial statements, monthly management reports, VAT returns, dedicated account manager

Best for: Growing businesses above AED 375,000 profit requiring Corporate Tax compliance and professional reporting

Limitations: No audit preparation, limited strategic advisory, no complex tax structuring advice

Advantages: Corporate Tax compliant, IFRS standards met, suitable for most SMEs, good value for compliance needs

Full-Service Accounting

AED 4,000–12,000/month

What's included: Complete accounting, audit preparation, tax planning, management reporting, cash flow analysis, business advisory, quarterly reviews

Best for: Established businesses, companies requiring audits, complex operations, Free Zone QFZP compliance

Limitations: Higher cost, audit fees separate (AED 15,000-100,000+)

Advantages: Audit-ready accounts, strategic tax planning, comprehensive business support, dedicated account management

Enterprise / CFO Services

AED 12,000+/month

What's included: Full accounting, strategic planning, investor reporting, due diligence support, complex tax structuring, board reporting, multi-entity consolidation

Best for: Large companies, businesses with investors, complex holding structures, preparing for exit or investment

Limitations: Premium pricing, requires long-term commitment

Advantages: C-level financial expertise, investor-grade reporting, strategic business advisory, complex transaction support

UAE Accounting Service Pricing by Business Size

Pricing varies significantly based on business complexity, transaction volume, and regulatory requirements. Here's what to expect across different business sizes in the UAE market. ⚠️ Prices shown are indicative and may vary by provider.

Startup / Sole Proprietor

< AED 375,000 annual profit

Basic Bookkeeping

AED 1,000-2,500/month

  • Monthly transaction recording and categorization
  • Bank reconciliation and cash flow tracking
  • Basic P&L and balance sheet preparation
  • Expense management and receipt organization
  • Supplier and customer payment tracking
  • Quarterly financial summary

Recommended providers: Local bookkeepers, junior accounting firms, freelance accountants

Small Business

AED 375,000 - 5,000,000 annual profit

Standard Package

AED 2,000-4,000/month

  • Full bookkeeping with IFRS compliance
  • Corporate Tax return preparation and filing
  • Monthly management accounts and KPI reporting
  • VAT return preparation (if registered)
  • Basic tax planning and compliance advisory
  • Dedicated account manager and monthly reviews

Recommended providers: Mid-tier accounting firms, specialized SME practices, Big 4 SME divisions

Medium Business

AED 5,000,000+ annual profit

Full-Service Package

AED 4,000-12,000+/month

  • Complete accounting and IFRS financial statements
  • Audit preparation and liaison with external auditors
  • Advanced tax planning and optimization strategies
  • Management reporting with business intelligence dashboards
  • Cash flow forecasting and working capital management
  • Strategic business advisory and growth planning
  • Multi-entity consolidation if required

Recommended providers: Established accounting firms, Big 4 practices, specialized industry experts

Additional Costs to Consider

  • Annual Audit: AED 15,000-100,000+ depending on company size and complexity
  • Corporate Tax Return: Usually included in monthly fees, standalone preparation AED 5,000-20,000
  • Company Secretary: AED 8,000-25,000/year for board resolutions and corporate governance
  • Accounting Software: AED 200-2,000/month if not included in service package
  • Ad-hoc Services: Due diligence AED 25,000+, financial projections AED 10,000+, M&A support quoted separately

How to Choose the Right Accounting Provider in the UAE

Selecting the right accounting service provider requires careful evaluation of your business needs, growth plans, and regulatory requirements in the UAE market.

Business Size & Complexity

Match your provider's expertise to your business scale and complexity. Different firms specialize in different business sizes and have varying capabilities.

  • Annual revenue and transaction volume determine service level needed
  • Number of entities, employees, and banking relationships affects pricing
  • Industry-specific requirements may need specialized expertise
  • Growth plans should influence provider selection for scalability

Free Zone vs Mainland Expertise

Free Zone accounting has specific requirements (QFZP compliance, mandatory audits, substance reporting). Ensure your provider understands your jurisdiction's rules.

  • Experience with your specific Free Zone authority requirements
  • Understanding of QFZP conditions and de minimis rules
  • Knowledge of audit requirements for license renewal
  • Can handle both Free Zone and mainland entities if needed

Technology & Integration

Modern accounting relies heavily on technology integration. Ensure your provider can work with your existing systems and is preparing for mandatory e-invoicing.

  • Cloud-based accounting software proficiency (Zoho, QuickBooks, Xero)
  • Integration with banking, POS, and business management systems
  • Real-time reporting capabilities and client portal access
  • E-invoicing readiness for Peppol 2027 mandate

FTA Registration & Qualifications

For tax matters, ensure the firm has FTA-registered tax agents. Check for qualified accountants (ACCA, CPA, CA) and professional memberships.

  • FTA-registered tax agents on staff for tax representation
  • Qualified accountants with ACCA, CPA, or CA designations
  • Professional memberships and continuous education
  • Can communicate with FTA on your behalf

Red Flags to Watch Out For

Be cautious if you encounter any of these warning signs when evaluating providers:

  • No clear pricing or hidden fees
  • Not registered with UAE Ministry of Finance or no FTA-registered tax agents on staff
  • Poor online reviews or complaints about responsiveness and missed deadlines
  • Unwilling to provide references from similar businesses or client testimonials
  • Pressure to sign long-term contracts without trial period or satisfaction guarantees
  • No clear data security protocols or backup procedures for financial information
  • Limited technology integration capabilities, not preparing for e-invoicing 2027

Common UAE Accounting Compliance Problems and Solutions

Avoid these frequent mistakes that can trigger FTA penalties and compliance issues.

Late Corporate Tax Return Filing

Missing the 9-month deadline after financial year-end results in accumulating penalties: AED 500/month for months 1-12, then AED 1,000/month thereafter. Even one day late counts as a full month.

  • Set calendar reminders 4-6 months before deadline
  • Engage accounting provider with dedicated tax filing processes
  • For Dec year-end, start preparation by May for Sept 30 deadline
  • Consider estimated payments if final figures delayed

Prevention: Start tax return preparation 4-6 months before year-end to ensure adequate time for review and filing.

Late Corporate Tax Registration

Not registering for Corporate Tax within required timeframe incurs AED 10,000 penalty. Note: FTA offered a waiver for first-time late registration if you file your first tax return within 7 months of tax period end.

  • Register via EmaraTax immediately upon company incorporation
  • Don't wait for first filing deadline to register
  • Check eligibility for penalty waiver if already late
  • Consult tax advisor if unsure about registration requirement

Prevention: Register for Corporate Tax as part of your company formation process, even if you expect no taxable income initially.

Late Payment of Corporate Tax

Filing return on time but not paying the tax due results in 14% annual interest on outstanding amounts, accruing from the day after deadline until fully paid.

  • Calculate tax liability early in the year
  • Set aside funds monthly based on profit estimates
  • Pay before filing deadline even if return is still being finalized
  • Consider provisional payments if cash flow permits

Prevention: Create a tax reserve account and transfer estimated quarterly tax amounts to avoid year-end cash flow pressure.

Incomplete or Inaccurate Records

Missing receipts, incomplete expense records, poor categorization, or no audit trail can result in FTA rejecting expense deductions and penalties of AED 10,000 (first offense) to AED 20,000 (repeat within 24 months).

  • Implement digital receipt management and approval workflows
  • Use cloud-based accounting software with mobile receipt capture
  • Regular monthly reconciliation and document review processes
  • Keep records for minimum 7 years as required by law

Prevention: Use accounting software with automated bank feeds and mobile receipt capture for real-time accuracy.

Free Zone QFZP Status Loss

Failing to meet substance requirements, not maintaining audited accounts, or exceeding the de minimis threshold (minimum acceptable level of non-qualifying income) results in loss of 0% tax rate, subject to 9% on ALL income for current year AND next 4 years.

  • Engage specialized Free Zone accounting services with QFZP expertise
  • Regular compliance reviews and substance requirement monitoring
  • Track qualifying vs non-qualifying income separately
  • Ensure non-qualifying income stays below 5% of total or AED 5M

Prevention: Maintain separate revenue codes in your accounting system for qualifying vs non-qualifying income to monitor de minimis threshold continuously.

Small Business Relief Mistakes

Not electing SBR when eligible, or claiming when ineligible (e.g., QFZP or MNE, Multinational Enterprise, member). SBR ends 31 December 2026 and once revenue exceeds AED 3M, eligibility is permanently lost.

  • Track revenue carefully against AED 3M threshold
  • Remember election must be made via tax return, not automatic
  • Cannot use SBR if claiming QFZP status
  • Plan for standard Corporate Tax compliance post-2026

Prevention: If approaching AED 3M revenue, consider timing of income recognition carefully, once exceeded, you can never return to SBR even if revenue drops.

UAE Accounting & Tax Industry: Key Facts 2026

Official data from Federal Tax Authority and Ministry of Finance sources

Corporate Tax Landscape

  • 9% Corporate Tax rate on profits above AED 375,000
  • 0% rate on first AED 375,000 taxable income
  • 9-month filing deadline after financial year-end
  • 82% of UAE businesses are micro-businesses (<AED 3M revenue)
Source:Federal Tax Authority

Compliance Requirements

  • 7-year record retention requirement (Corporate Tax)
  • 5-year record retention for VAT purposes
  • AED 50 million revenue threshold for mandatory audit
  • AED 3 million revenue threshold for Small Business Relief
Source:Ministry of Finance

Penalties Structure

  • AED 10,000 late registration penalty
  • AED 500/month late filing (months 1-12), AED 1,000/month after
  • 14% annual interest on late Corporate Tax payments
  • AED 10,000-20,000 for failure to maintain proper records
Source:Cabinet Decision No. 75 of 2023

E-Invoicing Rollout

  • July 2026: Pilot programme begins
  • January 2027: Mandatory for businesses >AED 50M revenue
  • July 2027: Mandatory for all VAT-registered SMEs
  • Peppol 5-corner model with Accredited Service Providers
Source:Ministerial Decisions 243 & 244 of 2025

Free Zone Tax Benefits

  • 0% Corporate Tax for Qualifying Free Zone Persons (QFZP)
  • De minimis threshold: 5% or AED 5 million non-qualifying income
  • Mandatory audited accounts for QFZP status
  • 5-year disqualification if QFZP conditions not met
Source:UAE Corporate Tax Law

📊 Data Transparency: All statistics are sourced from publicly available industry reports, government data, and verified market research. Sources are cited for verification.

Data compiled and verified by Data from official regulatory sources • Last updated: January 2026

Frequently Asked Questions

Common questions about accounting and bookkeeping services in United Arab Emirates.