Corporate Tax Audit Services in Dubai | Proficient Accountants

What is a Corporate Tax Audit in the UAE?

A corporate tax audit in the UAE is a mandatory process where companies must review their tax liabilities, tax compliance, and financial records to ensure they meet the legal requirements set by the UAE government. During this audit, a tax auditor will thoroughly examine the company’s financial statements, tax returns, and supporting documents to identify any discrepancies or errors.

This process is essential for businesses to confirm they are following the tax laws, as outlined by the Federal Tax Authority (FTA). Corporate tax audits ensure that all taxes owed by the company are paid on time and in full. Failure to comply with the corporate tax regulations could result in penalties.

Who Needs a Corporate Tax Audit in the UAE?

According to the UAE's Ministerial Decision No. 82 of 2023, certain businesses are required to maintain audited financial statements for corporate tax purposes. These include:

Taxable Entities: Businesses that generate revenue exceeding AED 50 million during a tax period.
Qualifying Free Zone Entities: Companies located in UAE Free Zones that meet specific criteria.

It is important to note that corporate tax audits are not random. They are based on specific conditions set out by the government. To avoid penalties, businesses must comply with these tax regulations and ensure their financial records are in order.

Preparing Financial Statements for Corporate Tax

Businesses in the UAE, including Qualifying Free Zone Entities, must adhere to IFRS Accounting Standards when preparing their financial statements for corporate tax purposes. Ensuring that these standards are followed will help your business stay compliant and avoid any potential issues during the audit process.

Corporate Tax Audit Process in the UAE

If your business is subject to a corporate tax audit, here’s an overview of what you can expect:

Initial Examination: The FTA will review your corporate tax returns and related documents.
Audit Meeting: The tax auditor will schedule a meeting with your company at a specified time and location to start the audit process.
Document and Asset Review: During the audit, the auditor may request original documents or copies, and inspect on-site assets, including goods and inventory.
Audit Reassessment: If any discrepancies or concerns arise during the audit, the FTA may request a re-audit. You have the right to request copies of the audit notices and relevant documents.

Note: Audits will typically take place during normal business hours unless special circumstances require otherwise. Businesses must fully cooperate with auditors to ensure a smooth and efficient process.

It’s important to remember that only FTA-registered tax agents or taxpayers can register for corporate tax in the UAE and file tax returns to comply with the country’s tax laws.

Why is a Corporate Tax Audit Important?

Corporate tax audits play a vital role in ensuring compliance with the UAE’s corporate tax regulations. Here’s how auditing can benefit your business:

Identifying Accounting Issues: A tax audit helps detect weaknesses in your accounting systems and suggests improvements, ensuring that your business operates smoothly and efficiently.
Fostering Confidence: For directors and shareholders who are not directly involved in daily accounting tasks, a tax audit reassures them that the company is following correct financial procedures, reducing the risk of fraud or misreporting.
Improving Financial Advice: The audit process can provide valuable insights that help optimize your financial strategy, improve internal controls, and reduce tax liabilities.
Enhancing Business Value: Regular audits improve the credibility and accuracy of financial reports, which is crucial if your company plans to sell or attract investors in the near future.

Proficient Corporate Tax Audit Services in the UAE

At Proficient Accountants, we offer a comprehensive range of corporate tax services in the UAE, including corporate tax audits. Our team of FTA-approved tax consultants can assist you with:

Corporate Tax Assessment: We help evaluate your company’s tax obligations and identify opportunities for tax savings.
Corporate Tax Registration: We guide you through the registration process to ensure compliance with UAE corporate tax laws.
Corporate Tax Audit: Our experts will conduct a thorough audit of your company’s tax records, ensuring that everything is in order and compliant.
Corporate Tax Return Filing: We assist with filing accurate and timely tax returns to avoid penalties.
Corporate Tax Compliance: We ensure your business remains compliant with all tax regulations to avoid any potential issues with the FTA.

Our team also includes experienced business setup consultants who can help you establish your company in UAE Free Zones and explore strategies to reduce your corporate tax liabilities.