isab Accounting’s Post

Bookkeeping: it’s a Legal Obligation Under UAE Law In the UAE, bookkeeping is not just good practice—it’s a legal mandate. According to Article 26 of Federal Law No. 2 of 2015 on Commercial Companies and Article 78 of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, businesses are required to maintain proper accounting records for a minimum of 5 years from the end of the relevant financial period. Why is this important? 1. Legal Compliance: Proper bookkeeping ensures businesses meet their obligations under UAE laws, avoiding penalties and ensuring transparency with authorities like the Federal Tax Authority (FTA). 2. Financial Accuracy: Accurate records provide a clear picture of your company’s financial health, supporting sound decision-making. 3. Audit and Tax Readiness: UAE businesses must be prepared for tax audits and investigations, where detailed financial records are key to compliance. 4. Sustainability and Growth: Organized financial records boost investor confidence, attract funding, and facilitate smoother business operations. #UAE #Bookkeeping #Compliance #BusinessLaw #Accounting

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