Adhering to tax regulations and paying them off on time is an important financial aspect of managing a business in the UAE. The UAE’s laws can be very strict about these rules, and failing to follow them will lead to severe fines and penalties. In order to avoid that, proper Tax Auditing in the UAE must be implemented. This article will discuss:
What is a Tax Audit in UAE?
- Why does a business get scheduled for a Tax Audit in the UAE?
- How will I know if I’m scheduled for Tax Auditing in the UAE?
- What is examined during a UAE Tax Audit?
- How can Mubarak Al Ketbi Chartered Accountants help me in dealing with a Tax
Audit?
What is a Tax Audit in UAE?
The country’s tax laws and numerous tax benefit programs are administered by the Federal Tax Authority, or FTA, of the United Arab Emirates. One of the most important components of FTA’s array of initiatives to maintain the equity of the tax system for all taxable firms is an audit.
An FTA officer will visit your office or business location to thoroughly review the books and records of the firm in the event of a tax audit. The officer will verify that your company is paying all of its taxes, getting paid the necessary amounts for perks and refunds, and appropriately adhering to tax laws.
Companies operating in the UAE must abide by all applicable tax regulations. The FTA auditing procedure aids taxpayers in comprehending and fulfilling their responsibilities.
Why does a business get scheduled for a Tax Audit in the UAE?
Based on their risk assessment, the FTA decides when to schedule a tax audit in the United Arab Emirates for a specific company. This evaluation looks at a number of variables, such as the frequency and/or probability of mistakes in tax returns filed in the United Arab Emirates and the existence of signs of non-compliance with new tax requirements by the firm.
In addition, local tax authorities review the data you have included in your tax filings and cross-reference it with comparable returns from companies operating in the same sector as you.
How will I know if i’m being scheduled for Tax Auditing in the UAE?
You will get communication from an FTA official or qualified auditor. This might be a printed notice, an email, or a phone call. Important information including the date, time, and location of the tax audit in the United Arab Emirates will be sent to you before it starts.
The audit will often happen in your workspace or place of business. If you opted to be represented by a respectable audit company in Dubai, United Arab Emirates (like us!), it may also take place at the office of your representative.
What is examined during a UAE Tax Audit?
A tax auditor in the United Arab Emirates will examine the data found in the books and records of the firm, including the following:
Invoices, bank statements, rental agreements, contracts, receipts, notebooks,
and ledgers are examples of business records.
- Data that the FTA already has access to, such as property specifics and submitted tax returns
- Personal records, such as bank accounts, credit card statements, and mortgage paperwork for directors of the firm Modifications made by the company’s bookkeeper or accountant for taxes
purposes.
An auditor in Dubai may discover problems when doing an audit. The officer will talk with you about each matter after this. If you have any concerns, you may also discuss them with the auditor.
After the auditing has been done, the FTA Auditor will give of two things:
- Correct assessment: this refers to the situation where the UAE auditor determines that all of your assessments are true and no corrections need to be made. A completion letter informing you that the tax audit has concluded will be sent to you.
- A tax refund or tax payment: In the event that the Dubai, United Arab Emirates auditor determines that your return is incorrect and requires reevaluation, you will either be eligible for a refund of taxes or be required to pay the taxes that you owe. A formal proposal letter outlining the rationale for the reevaluation will be sent to you.
How can Mubarak Al Ketbi Chartered Accountants help me in dealing with a Tax Audit?
One of the leading accounting & auditing firms in the UAE is Mubarak Al Ketbi Chartered Accountants. We have over 20+ years of experience with over 2000+ happy customers. We provide services in accounting, auditing, liquidation, corporate tax & more. With us, we can audit your accounting records to record any errors in the tax filings. Contact us today, and we guarantee you with an excellent experience