With the introduction of corporate tax in the UAE, businesses must now prepare for the possibility of a corporate tax audit by the Federal Tax Authority (FTA). A tax audit can be triggered randomly or due to inconsistencies in filings, and non-compliance could lead to financial penalties and reputational damage.
What to Expect in an Audit
- Review of financial statements and transactional records
- Cross-checking VAT filings and corporate tax returns
- Examination of intercompany transactions and transfer pricing
- Validation of deductible expenses and documentation
- Interviews with key staff or finance team members
Best Practices for Audit Readiness
- Maintain a complete and organized record of invoices, receipts, and contracts
- Reconcile financial data monthly and perform regular internal reviews
- Ensure your bookkeeping and accounting are handled by certified professionals
- Identify and correct discrepancies proactively
- Create an internal compliance calendar for important filing and payment deadlines
Role of Technology
Using accounting software and cloud platforms allows for real-time tracking and secure storage of your financial records. This minimizes the risk of errors and simplifies the audit process. Digital records also allow faster access to historical data when required during audit queries.
How Profits Plus Supports You
From preparing documents to liaising with FTA officials, our audit support team ensures your business meets all compliance checkpoints. We also conduct mock audits and provide reports to improve your systems before a real review occurs. Our team works with you to build a documentation strategy and advise on best practices for long-term audit readiness.
