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Corporate Tax Audit

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What is Corporate Tax Audit in UAE?

A corporate Tax Audit in UAE is a mandatory process to audit the tax liability, Tax compliance and financial records of companies that meet the conditions. An auditor reviews the financial statements, tax returns, and documents to identify any discrepancies or errors during the process.
Corporate tax audits are conducted by the governing body to assess compliance with corporate tax laws and FTA guidelines, ensuring adherence to mandatory regulations for all organizations.

Who needs Corporate Tax Audit in UAE?

According to the Ministerial Decision No.82 of 2023, Applicable Taxable Persons should Prepare and Maintain Audited Financial Statements for corporate tax if it meets certain requirements below: According to the Ministerial Decision No.82 of 2023, Applicable Taxable Persons should Prepare and Maintain Audited Financial Statements for corporate tax if it meets certain requirements below:
1. A Taxable Person earning Revenue exceeding AED 50,000,000 (fifty million UAE dirhams) during the relevant Tax Period.
2. A Qualifying Free Zone Person.

Corporate Tax Audit Procedure in UAE

Companies can ensure FTA compliance in the UAE and get ready for a Corporate tax audit by taking the necessary actions:
Step 1 : Without any particular reason for doing so, the FTA officials will examine the company's corporate tax returns and other information.
Step 2 : The auditor(s) will have a meeting with the company at the appointed place on the time and date specified to start the audit process.
Step 3: The auditor may request originals or copies of business documents during the corporate tax audit, as well as take samples of the goods and other on-site assets. The party being audited has the right to request the tax auditor's qualifications, such as their expert identification cards, to verify their legitimacy.
Step 4 : The authority can mandate a re-audit if anything odd is discovered during the audit that could affect the tax return. The person being audited has the right to ask for a duplicate of the notice and any relevant documents and to attend the auditing procedures that are carried out away from the official locations.
Unless exceptional events demand it to be done outside of normal business hours, the Corporate tax audit will be carried out during FTA's official period of operation. The business being audited for taxes, along with its solicitors and tax advisors, must cooperate fully with the auditors as they carry out their duties. It is a known fact that only FTA registered Tax agents in UAE or Taxpayers can only register for corporate tax in UAE and file corporate tax returns to comply with UAE CT Law.