The Federal Tax Authority (“FTA”) has issued Decision No. 4 of 2026 dated 2 June 2026 (‘the Decision’), setting out the rules for maintaining and retaining accounting records and commercial books when the records and books are retained in Electronic Copy/ Photocopy. This Decision shall come into effect on 30 July 2026.
Key Highlights of the Decision
- Records must be complete and accurate: Where records are retained electronically or as photocopies:
- Accounting records and commercial books must be identical copy of the original documents
- Reproduced copy must include every page of the original document and maintain the same order
- Partial scans of any part of document is not acceptable
- Records must remain readable: Electronic records and photocopies must be maintained in a format and quality that allows them to be clearly viewed and read on a computer screen. Where photocopies are maintained, the paper and ink used must be of sufficient quality to ensure that the records do not fade during the applicable retention period.
- The FTA must be able to access the records: The FTA must be given access to the records and the system where they are stored when requested. If electronic records are password-protected or encrypted, the business must provide the necessary passwords or encryption keys. For photocopies, the business must provide access to the location where they are stored
- Outsourcing of maintenance of Records and books: A business can appoint a third party to maintain its accounting records and commercial books. However, outsourcing does not transfer the legal responsibility. The business remains responsible for keeping the records safe and properly maintained.