Top 7 Accounting Requirements Every Dubai Business Must Follow

Dubai’s dynamic business environment offers remarkable opportunities, but it also comes with strict compliance standards—especially when it comes to accounting and financial reporting. Whether you run a start-up or a multinational branch, meeting these requirements is crucial to avoid penalties, build investor trust, and maintain a strong reputation.

Here are the top seven accounting requirements every Dubai business must follow in 2025:

1. Maintain Proper Accounting Records

Under UAE Federal Law No. 2 of 2015 (Commercial Companies Law) and Federal Decree-Law No. 47 of 2022 (Corporate Tax Law), all businesses must keep accurate and up-to-date accounting records. These records should reflect all transactions, assets, liabilities, and equity in accordance with International Financial Reporting Standards (IFRS).

Tip: Store records both digitally and physically for easy retrieval during audits.

2. Comply with VAT Regulations

If your taxable supplies and imports exceed AED 375,000 annually, VAT registration is mandatory under Federal Decree-Law No. 8 of 2017 on VAT. You must:

• Charge VAT on taxable goods and services
• File VAT returns quarterly (or monthly, if applicable)
• Keep VAT invoices and records for at least 5 years

Note: Late filing or payment can result in significant penalties.

3. Corporate Tax Compliance

Starting from June 2023, the UAE introduced a 9% corporate tax on business profits above AED 375,000. This means:

• Businesses must prepare audited financial statements
• Calculate taxable income according to Ministry of Finance guidelines
• Submit corporate tax returns within the given deadline

4. Wage Protection System (WPS) Records

If you employ staff, you must process salaries through the Wage Protection System as per Ministry of Human Resources and Emiratisation (MOHRE) regulations. Maintain detailed payroll records, including salary slips, payment proofs, and employee contracts.

5. Annual Financial Audits

Many companies, especially those in free zones (like DMCC, JAFZA, DAFZA), must submit audited financial statements annually. The audit must be conducted by a UAE-registered auditor approved by the relevant authority.

6. Proper Record Retention

According to UAE laws, businesses must retain accounting records for at least 5 years (some free zones require up to 8 years). These include:

• Invoices & receipts
• Bank statements
• Payroll records
• Tax filings

7. Anti-Money Laundering (AML) Compliance

Companies engaged in certain activities (like real estate, gold trading, or accounting services) must comply with the UAE AML/CFT laws:

• Conduct customer due diligence (KYC checks)
• Keep transaction records for 5 years
• Report suspicious activities to the Financial Intelligence Unit (FIU)

 

Expert Guidance with Caspian Accounting and Bookkeeping

Meeting Dubai’s accounting and compliance requirements demands precision, updated knowledge, and a proactive approach. Caspian Accounting and Bookkeeping provides comprehensive accounting, tax, and compliance solutions tailored to your business needs. Our experts ensure that your records are accurate, your filings are on time, and your business remains fully compliant with UAE laws.

Ready to simplify your accounting and compliance process? Contact Caspian Accounting and Bookkeeping today for personalized support and expert advice.