Year-end is when good tax planning saves real money, and bad timing creates penalties. This is the checklist we run with every client in November and December: 12 items, each worth doing.
What you'll learn
→ Income and expense timing → Reliefs and elections → Documentation refresh → Operational hygieneIncome and expense timing
Review accruals for service revenue: should they be recognised in this period or next? IFRS 15 (revenue recognition) and the matching principle drive the answer, but timing within reasonable interpretations can shift income meaningfully across periods. Document the basis.
Accelerate deductible expenses where possible: prepay annual subscriptions, complete training, finalise pending repairs. Capital expenditure timed before year-end starts depreciation in the current period; timed after, depreciation begins next period. The choice can shift AED 50K+ of taxable profit on a typical SME.
Reliefs and elections
Confirm SBR eligibility if revenue is near AED 3M, push or pull invoices to stay below threshold (carefully, within accounting standards). Confirm QFZP status if you operate in a free zone, review qualifying vs non-qualifying income split and ensure the de-minimis cushion is intact.
Tax Group elections must be made on the parent's CT-101. If you intend to group for the next period, align year-ends now. CT loss carry-forward rules apply group-wide once formed, pre-grouping losses carry forward to the group post-formation but with restrictions.
Documentation refresh
Update transfer pricing documentation: refresh the benchmark study if older than 24 months; ensure intercompany agreements are signed and current; reconcile related-party balances. Update beneficial ownership records for the FTA's UBO database if there have been any changes.
Refresh your TRC if you have one. The FTA issues TRCs for the UAE financial year, so renewing in January for January-year-ends gives you 12 months of validity for treaty claims abroad.
Operational hygiene
Run a year-end VAT reconciliation: output VAT in your books should equal output VAT in your filings, same for input. Variances mean a missed period, fix them via voluntary disclosure if material. Reconcile customs entries to your VAT returns: imports captured in customs but missed in VAT are a leading audit finding.
Schedule your statutory audit early, most auditors are full from January through March. If you need audited statements for QFZP claims, treaty applications, or bank facilities, book the auditor in October or November of the prior year.
This guide is general information, not professional advice. For situations that involve specific facts, talk to your accountant, or hire one of ours from the marketplace.