what if I don't maintain books of accounts?

what if I don't maintain books of accounts?

Maintaining proper books of accounts is compulsory in the UAE and any violations will have to bear administrative penalties

Maintaining books in your business is highly advised if you want to be able to file taxes and understand how your money is being used. It will seriously hurt your company.

In the United Arab Emirates (UAE), it is important to maintain proper books of accounts for your business, as it is a legal requirement. Failing to maintain accurate financial records can result in penalties, fines, and legal issues. Additionally, having well-maintained financial records is essential for making informed business decisions, filing taxes, and demonstrating financial transparency. It’s highly advisable to comply with the UAE’s accounting and taxation regulations to avoid any potential problems with authorities. 

Companies in UAE are required to maintain their books of accounts in their head office for at least 5 years from the end of the financial year of the company. Failure to do so will attract a penalty of AED 20,000 to AED 100,000. Companies are also required to maintain books of accounts and supporting records for a minimum of five years under the Federal Tax Procedures Law. Failure to do so will attract a penalty of AED10,000 at first instance with an additional AED50,000 for repeat violations.

Maintaining proper books of accounts is compulsory in the UAE and any violations will have to bear administrative penalties. Lack of proper books of accounts for a business always ends up in a nightmare no matter which industry you belong to.

It is highly recommended to maintain books in your company, or you can't file tax, and cant understand how your money is spent. it will impact your business so badly