Tax Audit
Navigating Tax Excellence in the UAE: Expert Auditing & Compliance Services
Overview of Tax Auditing in the UAE
As per the Tax Procedures Law (Federal Decree-Law no. 7), a tax audit is a formal process conducted by the Federal Tax Authority (FTA). The primary objective is to examine commercial records, data, and financial information of taxable persons to ensure full compliance with UAE VAT Law and Tax Procedures Law.
The FTA conducts these audits to verify that all tax liabilities are accurately calculated and that every tax due is collected and provided to the government within the mandated timeframe.
Why Your Business Needs Professional Tax Support
The UAE regulatory landscape is evolving. Staying compliant requires more than just routine checks; it requires strategic insight.
- Expert Assistance: Registered tax agents assist companies with pre-audit and post-audit support to ensure total VAT compliance.
- Risk Mitigation: Hiring FTA-registered tax agents helps highlight risks, areas of exposure, and non-compliance before an official audit occurs.
- Strategic Growth: Beyond compliance, auditing brings clarity to your financial standing, uncovering opportunities for smarter business decisions.
Corporate Tax Audit Requirements
With the implementation of the federal Corporate Tax (CT) system for fiscal years beginning on or after June 1, 2023, mandated audits are now a reality for many.
Who needs a Corporate Tax Audit? According to Ministerial Decision No. 82 of 2023, taxable persons must maintain audited financial statements if they meet the following criteria:
- Revenue Threshold: A taxable person earning revenue exceeding AED 50,000,000 during the relevant tax period.
- Free Zone Entities: Any Qualifying Free Zone Person.
Accounting Standards to Follow:
- Revenue > AED 50M: Must follow IFRS standards.
- Revenue < AED 50M: May follow IFRS for SMEs.
- Qualifying Free Zone Persons: Obligated to follow IFRS Accounting Standards.
The FTA Tax Audit Process
Understanding the process helps your business stay prepared. The FTA can carry out an audit for any reason at any time.
- Notification: Usually, the Authority sends a notice at least five days before the scheduled audit.
- Working Hours: Audits are typically conducted during normal FTA working hours, though the Director-General can authorize exceptions.
- Powers of Auditors: Tax auditors have the right to enter business premises, inspect original records, and even seize samples of stock or assets if necessary.
- Results: The FTA will notify the business of the final audit results within 10 business days of completion.
Essential Records for Audit Readiness
Under Article (78) of the Federal Decree-Law on VAT, registrants must present the following:
- Records of all supplies, imports, and exports.
- Tax invoices and credit notes (both issued and received).
- Records of goods/services used for non-business purposes.
- Customs declarations and supplier invoices.
- Evidence of Reverse Charge Mechanism calculations.
Our Comprehensive Service Suite
We provide a global-local blend of expertise to support your business with confidence.
- VAT Consultancy: Ensuring your accounting software generates reports defined under Article 2 of the Tax Procedures Law.
- Corporate Tax Services: From registration and assessment to return filing and compliance.
- Audit & Assurance: High-fidelity reviews of financial statements and internal controls.
- AML Consulting: Helping you navigate Anti-Money Laundering regulations.
- Company Liquidation & Trademark Registration: Supporting your business throughout its entire lifecycle.
Why Partner with Bizedge
Partner with Bizedge for expert tax and audit support that keeps your business fully compliant and strategically ahead. Our FTA-registered agents provide precise, proactive guidance—from pre-audit preparation to post-audit solutions—while offering holistic services across AML, corporate structuring, and trademark registration. With Bizedge, compliance becomes simple, insights become actionable, and growth becomes achievable. Contact us today to secure your business’s financial clarity and future success.