NaqoodFTA Decision 4 of 2026 Sets the Standard for How UAE Businesses Keep Their Books
The Federal Tax Authority has set out, for the first time in one short decision, how the information in your accounting records and commercial books must be kept. FTA Decision No. 4 of 2026 on the Rules and Requirements for Maintaining the Information Contained in Accounting Records and Commercial Books was issued on 2 June 2026 and took effect on 30 July 2026. The FTA added it to its legislation portal on 20 August 2026.
The decision does not create a new duty to keep records. That duty already sits in Federal Decree-Law No. 28 of 2022 on Tax Procedures, its Executive Regulation, and the Corporate Tax Law. What Decision 4 adds is the quality standard: your records must be complete, legible and accessible to the FTA, including the system they live in.
What does FTA Decision No. 4 of 2026 require?
Article 2 sets three rules. Records and commercial books must be complete and identical to the original documents. They must be clear and easily legible. And the FTA must be given access on request, “including access to the system in which such records and commercial books are saved.”
Article 3 turns those rules into practical requirements for scanned and electronic copies.
| Rule (Article 2) | What Article 3 requires | What to check in your business |
|---|---|---|
| Complete and identical to the original | Every page, in the original order. Partial scanning is not accepted | Store the full supplier invoice or contract, not just page one or extracted fields |
| Clear and easily legible | Enough quality and resolution to read on a computer screen. Black and white copies of colour documents are fine if still legible | Re-scan blurry phone photos and faded thermal receipts |
| Accessible to the FTA on request | Hand over passwords or encryption keys for protected files or systems. Give access to where paper copies are stored | Know who can grant FTA access to your accounting system, and that they can do it quickly |
Article 4 allows you to use a third party, such as an outsourced accountant or bookkeeper, to maintain your records. You remain legally responsible for keeping them and keeping them safe.
Why does this matter for small businesses?
Most SMEs now run their books in software and keep invoices as PDFs, photos or email attachments. That is fine under Decision 4, as long as the copy is a full, readable replica of the original. A system that captures only the amount, date and supplier name from a bill is useful for bookkeeping, but it does not replace keeping the complete document itself.
The access rule is the bigger change in practice. If the FTA opens a tax audit, it can ask to see the system where your records are saved, not just exported reports. If your files or software are password protected, you must provide what is needed for access. That covers cloud accounting platforms, shared drives and document tools.
For Corporate Tax, Article 56 of the Corporate Tax Law already requires a Taxable Person to keep records that support its Tax Return for seven years after the end of the Tax Period they relate to. Decision 4 does not change that period. It means the records must still be complete, legible and reachable in year six or seven, even if you have changed accountant or software since. This links directly to the documents you rely on when filing Corporate Tax with Small Business Relief or a full Corporate Tax return.
The same applies on the VAT side. The tax invoices and credit notes behind every input VAT claim in your VAT return need to be kept in full and in readable form. With the supplier verification checks under FTA Decision No. 13 of 2026 now live, the evidence of those checks belongs in your records too. We covered those rules in our post on TRN verification and the new supplier checks.
What happens if records are not kept properly?
Under the penalty table annexed to Cabinet Decision No. 75 of 2023 (Corporate Tax), failure to keep the required records and other information specified in the Tax Procedures Law and the Corporate Tax Law carries an administrative penalty of AED 10,000 for each violation, or AED 20,000 for each repeated violation within 24 months of the last one. Records that are incomplete or that the FTA cannot access also make it much harder to support your figures during an audit.
What should UAE business owners check this month?
Start with where your records actually live: your accounting software, email inboxes, shared drives and any paper files. Check that multi-page invoices and contracts are stored in full. Replace low-quality photos of receipts with clear scans. Write down who in the business, or at your accounting firm, can give the FTA access to each system and how.
If an external accountant keeps your books, confirm in writing that you keep access to your records if the relationship ends. If you move to new software, export and keep your historic data in a readable format before the old subscription lapses.
Naqood is FTA-accredited accounting software for UAE businesses. Keeping your ledger and supporting documents together in one cloud system makes it simpler to answer an FTA request without hunting through inboxes.
Official text: FTA Decision No. 4 of 2026 on the tax.gov.ae legislation page. The English version published by the FTA is an unofficial translation.
Frequently asked questions about FTA Decision No. 4 of 2026
When did FTA Decision No. 4 of 2026 take effect?
It took effect on 30 July 2026. It was issued on 2 June 2026 and published on the FTA legislation portal on 20 August 2026.
Does Decision 4 change how long I must keep my records?
No. It sets how records must be kept, not for how long. For Corporate Tax, Article 56 of the Corporate Tax Law still requires seven years after the end of the relevant Tax Period, and the Tax Procedures rules continue to apply.
Can I keep only scanned or digital copies of invoices?
Yes, as long as the electronic copy or photocopy is identical to the original, includes every page in the same order, and is clearly legible on screen. Partial scans are not accepted.
Does the FTA need access to my accounting software?
It can ask for it. Article 2 requires access to the records “including access to the system” where they are saved, and Article 3 requires you to provide passwords or encryption keys for protected files or systems.
Is my accountant responsible if records are missing?
You can outsource record keeping to a third party under Article 4, but your business remains legally responsible for maintaining the records and keeping them safe.
This guide is for general information and does not constitute tax or legal advice. For how the rules apply to your specific situation, consult a qualified UAE tax adviser. Naqood is an FTA-accredited accounting platform for UAE businesses.