Definition

An Accounting Period is the 12-month financial reporting cycle used by UAE businesses to prepare financial statements and determine tax obligations.

Key points

• Typically aligns with the calendar year or fiscal year.
• The same period must be used for both accounting and Corporate Tax reporting.
• The first accounting period may be shorter or longer than 12 months with FTA approval.
• Key for determining VAT and Corporate Tax deadlines.

Practical example

A company registered on 1 April 2024 sets its first accounting period from 1 April 2024 to 31 March 2025.

Why it matters

Consistent accounting periods ensure smooth tax filings and financial reporting alignment.