Question and answer

Yes, maintaining accounting records is mandatory for all companies registered and operating in the UAE, including mainland companies, free zone entities, offshore companies, and even freelancers. Companies must keep records in accordance with International Financial Reporting Standards (IFRS) and retain documents for a minimum of 5 years. Swallow Group assists in establishing proper bookkeeping practices that fully comply with UAE legislation requirements.

The UAE imposes corporate income tax (9% on companies with annual income exceeding AED 375,000), VAT (5% or 0% depending on the type of activity), and excise duties on specific product categories. Corporate tax has been in effect since June 2023 and applies to most companies, including free zone entities that do not meet certain exemption conditions. Swallow Group provides comprehensive tax compliance support and helps optimize your tax position within the legal framework.

Mandatory VAT registration is required if a company's annual turnover (taxable supplies and expenses over the last 12 months) exceeds AED 375,000. Voluntary registration is available for businesses with turnover between AED 187,500 and AED 375,000. Companies with annual turnover below AED 187,500 are not obligated to register. Swallow Group will assist you with Federal Tax Authority (FTA) registration and VAT record management.

Quarterly VAT returns must be submitted every 3 months (within 28 days following the end of the reporting period). Annual financial statements and corporate tax declarations are due within 9 months of the fiscal year end. Swallow Group ensures timely preparation and filing of all required reports, helping you avoid penalties and compliance issues.

Violations of accounting and tax record-keeping requirements, late filing of returns, or errors in declarations result in significant penalties. The Federal Tax Authority (FTA) may initiate audits at any time upon discovering irregularities. Swallow Group maintains high accuracy standards in record-keeping to minimize penalties and potential issues with tax authorities.

Accounting service costs in the UAE range from AED 299–800 per month for small companies with minimal transactions to several thousand AED for larger enterprises. Outsourcing accounting is significantly more cost-effective than maintaining an in-house accountant (typical salary ranges from AED 8,000–15,000). Contact Swallow Group for a customized quote based on your transaction volume and specific business requirements.

Accounting outsourcing provides: access to a team of qualified professionals with specialized UAE expertise; reduced operational costs compared to in-house staff; accurate financial reporting and strict compliance with local regulations; minimized risk of penalties; and the ability to focus on business growth and development. Swallow Group combines financial expertise, strategic thinking, and technology solutions to support your business growth.