The UAE Corporate Tax
Forensic Guide.
Understanding Federal Decree-Law No. 47 and the 7-year statutory data residency mandate for UAE businesses.
01. The Statutory Requirement
Effective 2024, the Federal Tax Authority (FTA) requires all taxable persons in the UAE to maintain detailed records and documentation for a minimum of seven years. This is not merely an accounting requirement; it is a forensic one.
The Penalty Risk
Failure to maintain records in a residency-compliant manner can result in administrative penalties starting from AED 10,000, escalating with repeat violations.
02. Article 18 & Free Zone Persons
For Free Zone entities, maintaining Qualifying Free Zone Person (QFZP) status is the difference between a 0% and 9% tax rate. Article 18 mandates strict "Substance" requirements.
Adequate Substance
Physical presence and core income-generating activities within the Free Zone.
Arm’s Length Principle
Ensuring related-party transactions are priced according to market standards.
Audit-Ready in Seconds.
Arakan Forensic automates the collection and vetting of your statutory DNA. By keeping your data in the me-central-1 (Dubai) region, you satisfy both the FTA and the UAE Data Protection Laws.