Records

Can I keep my records on a cash basis (when money comes in or goes out) instead of accruals?

Usually safe if you keep the documents

The basic rule

A business may prepare its accounts on the cash basis when its income is 3,000,000 AED or less, or in exceptional cases on request. Otherwise it uses the international accounting standards (IFRS), or the simpler IFRS for SMEs for income up to 50,000,000 AED.

When it is different

• The test is per tax period: if revenue goes above AED 3,000,000, the cash basis is no longer available on that ground.
• Cash basis still requires complete records of receipts and payments.
• Capital assets still need consistent treatment.

Documents to keep

• Record of every receipt and payment with dates
• Bank statements

How safe is it?

Usually safe if you keep the documents Low.

When to ask a professional

Ask when you change basis or approach AED 3,000,000. Who can confirm it for your own case: an FTA-registered tax agent (a tax professional approved by the UAE tax authority), or the optional year-end review in SoloBooks.

Check it with the free calculator: Small Business Relief calculator →

Sources

• Ministerial Decision No. 114 of 2023 on Accounting Standards and Methods — Art. 2 and 4
• Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (consolidated, unofficial English translation) — Art. 20(1), 20(5)(a) and 20(6)

Last verified: 19 October 2026

General information, not tax advice. Your situation may differ.

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