Corporate Governancein the UAE
Even in a tax-free environment, your accounting matters
Accounting in the UAE is not triggered by tax filing requirements but is more of a corporate law requirement.
The UAE does not have any federal tax on income and wages, resulting in fewer accounting requirements prescribed by the government compared to countries that do levy tax. Yet even in a tax- free environment it is critical to create an accounting structure that produces accurate information and analysis as a base for strategic decision-making.
Based on recent company laws, company management is responsible for having accounts that give a true and fair view of the company to its shareholders. More and more authorities have imposed the requirements to file the audited financial statements as part of the company license renewal requirements.
Entities with regulated activities in the UAE - for example, entities that are regulated by the Central Bank, DFSA - are obliged to file their accounts on the regular basis with the regulator. This can be on quarterly to annual basis.