Sample Chart of Accounts Modified for Corporate Tax (CT)

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Sample Chart of Accounts Modified for Corporate Tax (CT)

maryam
January 21, 2026
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Sample Chart of Accounts Modified for Corporate Tax (CT)

Why a CT-Optimized Chart of Accounts Is Critical

UAE Corporate Tax is calculated from accounting profit, adjusted for tax rules.
If your Chart of Accounts is not structured for CT, you will face:

Manual tax adjustments
Higher error risk
Audit difficulties
Weak documentation

The Federal Tax Authority expects businesses to clearly identify:

Deductible vs non-deductible expenses
Exempt vs taxable income
Related party transactions
Capital vs revenue items

This CoA structure makes those distinctions built-in, not after-the-fact.

HOW TO USE THIS SAMPLE CHART OF ACCOUNTS

Account codes are illustrative (you may renumber)
Add or remove accounts based on your business
Do not merge tax-sensitive accounts
Keep CT-specific accounts separate even if balances are small

1. ASSETS (1000–1999)

Asset Accounts (CT-Relevant)

Code	Account Name	CT Purpose
1000	Cash on Hand	Audit trail
1010	Bank – Operating	Reconciliation
1020	Bank – Tax Reserve	Tax payment planning
1100	Accounts Receivable	Income timing
1200	Prepaid Expenses	Timing differences
1300	Fixed Assets – Equipment	Capital vs revenue
1310	Fixed Assets – Vehicles	Restricted deductions
1400	Intangible Assets	Amortization
1500	Accumulated Depreciation	Tax vs accounting

2. LIABILITIES (2000–2999)

Liability Accounts

Code	Account Name	CT Purpose
2000	Accounts Payable	Expense timing
2100	Accrued Expenses	Deductibility review
2200	VAT Payable	Non-income tax
2300	Corporate Tax Payable	CT tracking
2400	Related Party Payables	TP review
2500	Loans – External	Interest limits
2510	Loans – Related Party	TP + interest

3. EQUITY (3000–3999)

Equity Accounts

Code	Account Name	CT Purpose
3000	Share Capital	Ownership clarity
3100	Retained Earnings	Profit history
3200	Current Year Profit	Tax base
3300	Owner Drawings	Non-deductible
3400	Dividends Paid	Not deductible

4. REVENUE / INCOME (4000–4999)

Income Accounts (Critical for CT)

Code	Account Name	CT Treatment
4000	Sales – Core Business	Taxable
4010	Sales – Free Zone Qualifying	Exempt (if QFZP)
4020	Sales – Mainland	Taxable
4100	Service Income	Taxable
4200	Management Fee Income	TP review
4300	Interest Income	May be exempt
4400	Dividend Income	Often exempt
4500	Other Income	Case-by-case

5. COST OF SALES (5000–5999)

Cost of Sales Accounts

Code	Account Name	CT Purpose
5000	Cost of Goods Sold	Direct cost
5100	Direct Labor	Deductible
5200	Freight & Shipping	Deductible
5300	Inventory Adjustments	Timing risk

6. OPERATING EXPENSES – DEDUCTIBLE (6000–6999)

Fully Deductible Expense Accounts

Code	Account Name
6000	Rent – Office
6010	Utilities
6020	Internet & Phone
6030	Salaries & Wages
6040	Staff Benefits
6050	Professional Fees
6060	Software Subscriptions
6070	Marketing & Advertising
6080	Insurance
6090	Trade License Fees

7. OPERATING EXPENSES – RESTRICTED / REVIEW (7000–7499)

Restricted or Partially Deductible Expenses

Code	Account Name	CT Note
7000	Entertainment Expenses	Limited deduction
7010	Vehicle Expenses	Business portion only
7020	Travel Expenses	Business purpose required
7030	Home Office Expenses	Apportionment
7040	Staff Entertainment	Restricted

8. NON-DEDUCTIBLE EXPENSES (7500–7999)

Explicitly Non-Deductible Accounts

Code	Account Name	CT Rule
7500	Fines & Penalties	Not deductible
7510	Personal Expenses	Not deductible
7520	Owner Drawings	Not deductible
7530	Donations (non-approved)	Not deductible
7540	Capital Repayments	Not deductible

These accounts automatically adjust taxable income.

9. RELATED PARTY & TRANSFER PRICING ACCOUNTS (8000–8499)

Related Party Accounts

Code	Account Name
8000	Management Fees – Related Party
8010	Shared Services – Related Party
8020	Rent – Related Party
8030	Interest – Related Party
8040	Cost Recharges – Related Party

Separate accounts = easier TP documentation.

10. TAX ADJUSTMENT & CONTROL ACCOUNTS (9000–9999)

CT Control & Reporting Accounts

Code	Account Name	Purpose
9000	Accounting Profit Before Tax	Starting point
9010	Non-Deductible Adjustments	CT bridge
9020	Exempt Income Adjustments	CT bridge
9030	Depreciation Differences	CT bridge
9040	Loss Utilization	CT tracking
9050	Taxable Income	Final CT base

These accounts make the CT computation transparent.

KEY DESIGN RULES (DO NOT BREAK)

❌ Do not mix personal & business expenses
❌ Do not combine exempt & taxable income
❌ Do not hide restricted expenses
✅ Keep CT-sensitive accounts separate
✅ Review this CoA annually

STRATEGIC TAKEAWAY

A CT-modified Chart of Accounts:

Reduces tax errors
Speeds up filing
Strengthens audit defense
Lowers compliance cost

This structure turns Corporate Tax from a manual exercise into a system-driven process.

For official Corporate Tax guidance and definitions affecting accounting treatment, refer to UAE Federal Tax Authority resources:
https://tax.gov.ae/

Sample Chart of Accounts Modified for Corporate Tax (CT)

Sample Chart of Accounts Modified for Corporate Tax (CT)

Why a CT-Optimized Chart of Accounts Is Critical

HOW TO USE THIS SAMPLE CHART OF ACCOUNTS