UAE Tax Recordkeeping: FTA Decision 4 of 2026
FTA Decision No. 4 of 2026 sets requirements for keeping information from accounting records and commercial books. Its effective date is 30 July 2026. The practical question is straightforward: can your business produce a complete, readable record when the FTA asks?
The decision was issued on 2 June 2026 and became effective on 30 July 2026; the FTA legislation portal lists publication on 20 August. A later website upload date does not create a later compliance start. Read the decision.
What does the decision require?
Articles 2 and 3 require retained information to be complete, identical to the original, clear and legible, and accessible to the FTA, including the underlying electronic system. Scans must include every page in the original sequence; partial scanning is not accepted. Electronic copies must be readable on screen. Photocopies must remain legible through the retention period; black-and-white copies are permitted where details remain clear.
Where passwords or encryption protect electronic copies, the means needed for access must be available to the FTA on request. Article 4 permits third-party storage, while leaving legal responsibility for integrity and safekeeping with the taxpayer. The decision does not replace the different retention periods applicable under the relevant tax legislation with one universal period.
Try a retrieval test before buying more software
Choose a purchase recorded several months ago. Ask someone other than the person who booked it to retrieve the complete invoice, its attachments, approval, payment evidence and the accounting entry. This is a suggested operational test, not a statutory list of attachments for every transaction.
If they can find only a ledger line, the transaction value has survived but its support may not have. If the invoice lives in an inaccessible former employee’s mailbox, the storage arrangement needs attention. If the last page of a contract is missing, exporting another trial balance will not fix it.
What if an accountant or cloud provider keeps the records?
Put access and handover into the working arrangement. Agree who owns the files, who can retrieve them, how complete exports are made and what happens when the engagement ends. A business should be able to change its provider without losing the evidence behind a filed return.
For your own controls, record where the archive sits, who administers it and how access can be restored. Limit access to sensitive records to the people who need it. A recovery procedure should work when the usual contact is unavailable, rather than depending on a password remembered by one person.
A practical records handover
| Check | A useful result |
|---|---|
| Completeness | All pages and referenced attachments can be located and read. |
| Traceability | The invoice or agreement can be matched to the accounting entry and relevant tax treatment. |
| Access | An authorised colleague can retrieve the record without the original bookkeeper. |
| Continuity | An export or handover has been tested before a provider or system changes. |
| Retention | The business has checked the applicable tax-specific period and any additional retention obligation. |
This becomes especially useful alongside supplier verification before input VAT deduction. Collecting a bank confirmation or an exception explanation is only the beginning; finance also needs to preserve and retrieve it. For a wider evidence review, see our FTA audit defence service and the September tax update.
Frequently asked questions
Can a third party keep our tax records?
Yes. Article 4 permits third-party storage, but the taxpayer remains legally responsible for the integrity and safekeeping of the information.
Are partial scans acceptable?
No. The decision requires scanned copies to contain all pages in their original order.
Does Decision 4 introduce one retention period for all taxes?
No. It sets requirements for how information is kept. The relevant tax legislation still determines the applicable retention period.
Sources checked on . Practical examples and preparation suggestions are Phoenix Advisory commentary.
General information, not advice on a particular transaction. FTA decision PDFs linked here are labelled unofficial English translations; consult the Arabic legal text where interpretation differs.
Could you retrieve the complete file today?
We can review a sample of your records and help identify what is missing before an audit or a change of accountant exposes the gap.
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