Yes. The Federal Tax Authority (FTA) can conduct a Corporate Tax audit in the UAE to verify whether a business or other person has complied with the Corporate Tax Law and the Tax Procedures Law. An audit may involve reviewing the Corporate Tax return, financial records, supporting documents, electronically stored data and accounting systems. Businesses should therefore be able to explain and support the figures, adjustments, elections and disclosures included in their return.<\/p>
A Corporate Tax return should not be treated as a one-time submission that can be forgotten after filing. Good audit readiness starts with accurate accounting records, a clear tax computation and supporting documentation retained after submission. Beaufort Associates provides Corporate Tax return filing services<\/a> that can include preparation, review and support for routine post-filing queries, depending on the agreed scope.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t A Corporate Tax audit is an examination carried out by the FTA to determine whether a person has met its obligations under the Tax Procedures Law and the relevant tax law. For Corporate Tax, the review may examine whether the return, taxable income (income after the adjustments required by the Corporate Tax Law), Corporate Tax payable and supporting positions are consistent with the business\u2019s records and the applicable legislation.<\/p> \u00a0<\/p> This is different from a statutory audit of financial statements. A statutory financial statement audit is performed by an independent external auditor and focuses on the financial statements under the applicable financial reporting framework. An FTA tax audit is a regulatory review by the tax authority. Audited financial statements may form part of the evidence reviewed, but they do not replace the FTA\u2019s power to examine the tax position.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Yes. Federal Decree-Law No. 28 of 2022 on Tax Procedures, as amended, allows the FTA to conduct a tax audit of any person to verify compliance. The Executive Regulation also states that the decision to conduct an audit is within the FTA\u2019s discretion.<\/p> \u00a0<\/p> Before deciding to conduct a tax audit, the Executive Regulation requires the FTA to take specified factors into account. These include protecting the integrity of the tax system, the compliance responsibility of the person or associated persons, expected tax revenue, and the compliance and administrative burden of carrying out the audit.<\/p> \u00a0<\/p> Businesses should therefore not assume that only large companies can be audited. The legislation does not create a general exemption from FTA audit simply because a company is small, has claimed a relief or has already submitted its return.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The scope depends on the facts and the audit request. Under the Executive Regulation of the Tax Procedures Law, the FTA may inspect or audit the business premises and the documents and assets held there, electronically stored data and records, and accounting systems used by the person subject to tax.<\/p> For a Corporate Tax review, relevant support may therefore include:<\/p>Key Takeaways<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What is a Corporate Tax Audit in the UAE?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Can the FTA Audit Any Business?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
What Can the FTA Review During a Corporate Tax Audit?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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