Preparing The Budget Before preparing The Corporate Tax Return

Preparing a financial statement is not just a routine step; it is a crucial necessity to ensure your company is ready for any tax audit and to avoid future complications. Here are3 reasons why you should prepare a financial statement before filing corporate tax returns in the UAE:

1️⃣ Compliance with Tax Laws: Tax laws in the UAE require you to maintain regular accounts and records for a period of 5 to 7 years, depending on the type of tax. Preparing a financial statement ensures you are ready for any tax audit at any time, allowing you to rest easy without worrying about unexpected penalties or fines.

2️⃣ Accuracy in Tax Calculation: A financial statement helps you accurately determine revenues and allowable deductible costs. As a result, the tax you calculate will truly reflect the tax you owe, without any errors or surprises.

3️⃣ Building Trust with Stakeholders: Preparing financial statements in accordance with international accounting standards enhances your company's credibility among all relevant parties, such as investors, creditors, customers, and government entities.

• You could face significant tax penalties

• Loss of trust from investors and creditors

• Legal complications with government authorities

• Difficulty in making sound management decisions due to a lack of accurate data.

In Conclusion: Preparing a financial statement is not just a routine procedure; it is a fundamental step to protect your company and ensure its successful continuity. Don’t underestimate its importance!

Our team can assist you in preparing financial statements, ensuring their accuracy, and filing corporate tax returns.