New FTA Rules for Keeping Accounting Records in the UAE: What Decision No. 4 of 2026 Means for Your Business

If your business scans invoices, stores records in accounting software, or keeps photocopies instead of paper originals, the Federal Tax Authority has now told you exactly how those copies must be maintained.

FTA Decision No. 4 of 2026, issued on 2 June 2026 and effective from 30 July 2026, sets out the rules and requirements for maintaining the information contained in accounting records and commercial books. In short: electronic copies and photocopies are acceptable, but only if they are complete, identical to the originals, clearly legible, and fully accessible to the FTA on request, including access to the systems where they are stored.

This article explains what the Decision requires, how it fits into the wider UAE record keeping framework, and what you should check in your own business before the rules take effect.

What is FTA Decision No. 4 of 2026?

FTA Decision No. 4 of 2026 is a decision of the Chairman of the Board of Directors of the Federal Tax Authority. It was issued under the UAE Tax Procedures framework, specifically Federal Decree-Law No. 28 of 2022 on Tax Procedures and Cabinet Decision No. 74 of 2023, its Executive Regulation.

The Executive Regulation already allowed businesses to keep accounting records and commercial books as photocopies or electronic copies rather than paper originals, subject to conditions specified by the FTA. Decision No. 4 of 2026 now spells out those conditions in detail.

Two definitions sit at the centre of the Decision:

• Electronic Copy: a copy of a document or record created, saved, or converted into an electronic format, so that it can be viewed, retrieved, and read through electronic systems or media. This covers scanned PDFs, records generated inside accounting software, and documents stored in the cloud.
• Photocopy: an identical copy of the original document produced through photocopying, scanning, or photographic reproduction, preserving the content and form of the original in a clear and legible manner.

If your records exist in either of these forms, and for most modern businesses they do, this Decision applies to you.

The three core rules

Article 2 of the Decision sets out three rules that every person maintaining accounting records and commercial books must follow:

Each of these rules is then expanded into specific, testable requirements in Article 3. This is where the practical detail lives, and where most compliance gaps will show up.

What "complete and identical" means in practice

For electronic copies and photocopies, the Decision is precise:

• The copy must be an identical reproduction of the original document, containing all the data and details of the original.
• It must include all pages, in the same order as the original document.
• Partial scanning of any part of a document is not accepted.

That last point deserves attention. A common shortcut in busy finance teams is to scan only the first page of a multi-page contract, or the summary page of a supplier statement. Under the new rules, a partial scan is not a valid record. If the original is later discarded, the business may be left without an acceptable record at all.

Quality and legibility standards

The Decision also sets a quality bar. Records kept as electronic copies or photocopies must be of sufficient quality and resolution to keep the data clear and easily legible. Specifically:

• The details in the copy must be clear and easily legible when displayed on a computer screen.
• For physical photocopies, the ink and paper must be of a quality that prevents fading during the entire record keeping period.
• A non-coloured photocopy of a coloured document is allowed, provided the data and details remain clearly legible.

FTA access, including passwords and encryption keys

The third rule is the one most likely to catch businesses off guard. The FTA must be able to access records kept as electronic copies or photocopies on request. The Decision states:

• Where electronic copies, or the systems in which they are kept, are protected by encryption or passwords, the business must provide the encryption keys or passwords necessary to enable access for the Authority.
• For physical photocopies, access must be available, including to the places where they are stored.

This has real operational implications:

• If your records live inside cloud accounting software, a document management platform, or an ERP system, you need a practical way to give the FTA access to those records when requested.
• Password protected archives, encrypted drives, and access controlled folders are fine for security, but you must be able to hand over the keys.
• If records are stored offsite, for example in a warehouse or with a storage provider, the FTA must be able to reach them.

A sensible internal control is to document, in one place, where every category of record is stored, who holds access, and how access would be granted in an audit. If that answer currently depends on one employee's personal login, that is a risk worth fixing now.

Outsourcing record keeping: allowed, but responsibility stays with you

Article 4 of the Decision confirms that a business may engage a third party, such as an accounting firm, to maintain its records and commercial books. However, the business remains legally responsible for maintaining those records and ensuring their safety.

This matters for the many UAE SMEs that outsource bookkeeping. Handing your records to an external accountant does not transfer the legal obligation. If the provider loses documents, stores illegible scans, or cannot produce records during an FTA audit, the penalties fall on the business, not the provider.

When outsourcing, it is worth confirming in writing:

• Where your records are physically and digitally stored
• How complete scans are verified before originals are handled
• How you would retrieve everything if you changed providers
• How access would be arranged if the FTA requested it

A professional accounting and bookkeeping partner should be able to answer all four questions without hesitation.

How this fits into the wider UAE record keeping framework

Decision No. 4 of 2026 governs how records must be maintained. It sits alongside existing rules that govern what must be kept and for how long. The main retention periods are:

Additional retention periods can also apply, for example where a tax dispute is ongoing, a tax audit is underway, or a voluntary disclosure has been submitted. Because different laws can apply to the same document, many businesses simply adopt the longest applicable period across the board.

The point to take from the table is this: whichever retention period applies to you, the records must remain complete, identical, and legible for that entire period, in line with Decision No. 4 of 2026. A scan that is unreadable in year six of a seven year Corporate Tax retention period is a compliance failure, even though the scan was made on day one.

What happens if you get it wrong

Failure to keep the required records and information is an administrative violation under the UAE tax penalty framework. The penalty for failing to keep required records has generally been set at AED 10,000 for a first violation, rising to AED 20,000 for a repeated violation within 24 months.

The financial penalty is only part of the exposure. In an FTA audit, missing or inadequate records can lead to:

• Disallowed input VAT recovery, where supporting documents cannot be produced
• Challenges to Corporate Tax deductions and positions that lack documentary support
• A longer, more intrusive audit process
• Estimated assessments where the FTA cannot verify your figures from your records

Good records are not just a compliance formality. They are your evidence in any disagreement with the tax authority.

A practical compliance checklist before 30 July 2026

Use this as a starting point for an internal review:

1. Map your records. List where every category of record lives: accounting software, cloud storage, email, physical files, offsite storage, and records held by external accountants.
2. Audit your scans. Check a sample of scanned documents for completeness (all pages, correct order) and legibility on screen. Re-scan anything partial or unclear while originals still exist.
3. Fix fading risk. Scan thermal receipts and low quality prints promptly. Do not rely on paper that will not survive the retention period.
4. Document system access. Record how the FTA would be given access to each system, including who holds administrator rights, passwords, and encryption keys.
5. Review outsourcing arrangements. Confirm in writing how your external provider stores, verifies, and returns your records, and remember that legal responsibility stays with you.
6. Align retention settings. Check auto-deletion policies in email, cloud drives, and software subscriptions against your retention obligations. A system that deletes documents after 3 years is incompatible with a 5, 7, or 15 year obligation.

This review is also timely for another reason. With the UAE's e-invoicing framework being phased in from 2026, structured digital records are becoming the default. Businesses that tighten their digital record keeping now will find the transition considerably smoother.

Key takeaway

FTA Decision No. 4 of 2026 does not ban digital record keeping. It legitimises it, and then holds it to a clear standard: complete, identical, legible, and accessible, for the full retention period. From 30 July 2026, "we scanned it" is no longer enough on its own. The scan has to be complete, readable, and retrievable, and you must be able to open the door, digital or physical, when the FTA knocks.

Frequently asked questions

How Stevva can help

If you are not certain your current records would pass an FTA review, it is far better to find out now than during an audit. Stevva's team works with UAE businesses on accounting and bookkeeping, Corporate Tax compliance, and VAT compliance, including reviewing whether your record keeping practices meet the new requirements.

Not sure your records would stand up to an FTA request? Speak to Stevva for a record keeping health check before 30 July 2026.