M006, Omar Mohd Bin Dhaher Bldg, Al Qusais 1, Dubai, U.A.E.
+ 971 4 33393651
FTA evaluates if a company in the UAE pays taxes punctually and observes VAT laws. UAE businesses should expect the FTA to investigate their tax records. Tax audits help keep businesses out of financial and legal problem from tax return corrections. This is done through tax filing and record-keeping in a timely fashion.
At various times, the FTA carries out VAT audits or inspections. In case the authority identifies any errors or non-conformities in the audit, the business will be subject to strict penalties in the form of fines and penalties. Any documents or data, such as invoices and supporting documentation, may be accessed by the authority if it undertakes a tax audit.
1.Preparation for FTA Tax Audits: Organization and preparation of accounting records and VAT return submissions that may be scrutinized under an FTA audit are services that NAK Auditing aids businesses with.
2.VAT Compliance: The business assists clients in maintaining correct records, conducts comprehensive analysis of transactions that relate to VAT, and ensures responsibility accuracy.
3.Company Tax Advisory: NAK Auditing assists with tax registration, filing, payment, and record keeping in accordance with new requirements since federal company tax was introduced in the UAE.
⇒Key Features of the Service:
Identifying and analysing underreported and overreported transactions in a business’s taxable and VAT able documents.
1.Review of VAT Return Filing: All transactions and records are accessed and cash and VAT returns complied and methodically lodged.
2.Regulatory Guidance: Proof assists businesses in the timely and efficient meeting of new compliance requirements which are supported by the most recent local and international. tax compliance trends.
3.Tax Audits: Responding and providing preparation for FTA audits and assisting in potential disputes or assessments. Another area FTA assesses is in tax assessments.
By providing professional tax audit preparation, compliance checks, and representation during Federal Tax Authority (FTA) audits, NAK Auditing L.L.C. supports UAE companies with tax audits.
⇒Support Services for Tax Audits:
1.Ready to go Audit: NAK Auditing arranges and collates all books of account and VAT records before an official audit is carried out, so that these books are correct and complete according to requirements of the FTA.
2.Compensation Assessment: In order to achieve compliance with the company in UAE and FTA inspection resistant, the company undertakes a keen analysis of the accounting, VAT returns, and tax returns.
3.Findings of Discrepancies: The experienced auditors of NAK Auditing will find and remove any errors, gaps, or non-compliance issues, give actionable advice and assist in the correction of the errors in order to prevent the imposition of fines and penalties.
4.Representation: NAK Auditing can visit a company on behalf of it at FTA audits, assisting in the presentation of tax situations and safeguarding against any results and misunderstandings.
5.Ongoing Advisory: The firm offers clients periodic advice on best practices in documentation and tax administration, as well as notification of changes to tax law.
⇒Anticipatory Risk Aversion Response:
1.Proper Record-Keeping: As required by the FTA regulations, keep accurate and well documented records in at least seven years including tax returns, invoices, contracts, reconciliations and financial statements.
2.Regular Internal Audits: Conduct Before a formal audit, be sure that regular internal audit and tax risk analysis are conducted to detect any discrepancies or noncompliance issues.
3.Prompt Filing: To prevent the imposition of fines or unnecessary audit inspection, make sure that all corporation tax and VAT returns are filed correctly and on time.
1.Digital Transformation: In order to significantly reduce human labour and error rates, tax administrations and businesses now employ automated systems and advanced accounting software to make tax filing, reporting, and audit preparation easier.
2.Qualified Auditors required: The auditors must be qualified professionally according to the new rules. This ensures that audits are accurate, dependable and within ethical grounds and that leads to faster and more credible results.
3.Real-time Financial Monitoring: This can also help companies to automatically reconcile their costs and easily answer audit questions by implementing computer-aided VAT categorization and integrated dashboards.
4.Preparation in Advance: To avoid the last-minute error and give the auditing process a faster turnaround, companies should ensure that audited accounts and documents are prepared and completed at an adequate time before the FTA due dates.
4.Improved FTA Strategies: Federal Tax Authority has increased efficiency and transparency of its operations, simplified digital payments and provided guidance to improve compliance and reduce tax evasion.
As a response to the changing regulatory requirements and reducing the compliance risk, the strategic approach to tax audit planning in the United Arab Emirates is based on the early planning, computerization, and expert knowledge.
⇒Basic Methods:
1.Early Preparation & Early Engagement: Business organizations should prepare corporate tax returns, transfer pricing documents, and audited accounts well before due dates. Early communication with approved auditors ensures their availability and reduces the rate of filing mistakes that will lead to penalties.
2.Digital Transformation: Automation, artificial intelligence, and analytics now allow audit processes to become more effective, helping them to improve risk analysis, detect inconsistencies, and accelerate reporting. Digital infrastructure also guarantees better and quicker audits, as well as the match to the international standards.
3.Transfer Pricing and Documentation: Under the new standards, massive benchmarking research and transfer pricing tests must be conducted and documentations should be prepared and shared as per the FTA guidelines. This would be needed in order to remain compliant and avoid expensive fines.
Value addition for tax audit in the UAE manifests in improved compliance, reduced risk, financial transparency, and informative advice for business enhancement.
⇒Advantages and Added Value:
1.Greater compliance: Tax audits ensure that businesses abide by the Federal Tax Authority laws to prevent costly fines and court battles.
2.Risk Minimization: Audit exposes areas of weakness in accounting systems and financial statements with the aim of ensuring that businesses reduce risks and curb the chances of fraud or errors.
3.Financial Credibility: Audited accounts ensure the confidence of shareholders, investors, banks, and governmental bodies, which boost better stakeholder relations and easy funding or sale of business.
4.Strategic Insights: The audit procedure provides the management with practical recommendations on tax planning, cost effectiveness and increased profit margins, through in-depth analysis of financial and tax documents.
5.True and Fair View: The audit conducted by the tax authorities confirms the quality and credibility of the published accounts and contributes to enhancing the image of the company and maintaining a long-term reputation in the market.
6.Growth Preparation: Clean books that appeal to buyers and regulators will make regular audit firms better prepared to grow, merge, or sell.
Here are some common questions about Tax Audit
The FTA typically informs the business of the audit at least 5 business days prior to the audit. There could however be no prior notice in situations such as suspected tax evasion. The audit can be conducted at the premises of the business or at the office of FTA during the regular working hours. To have an easy audit, businesses are required to make records and staff available to the audit team.
Tax returns, invoices, bank reconciliations, financial statements, purchase and sales records, and other pertinent accounting and tax records are some of the documents that are regularly reviewed to confirm that taxes have been paid.
The corporate tax returns should be submitted not later than 9 months of the end of the financial year.
The VAT returns are normally submitted quarterly or monthly depending on the size of the business.
These filings are associated with audits that may span several tax periods as long as they fall within the lawful retention period of 7 years.
Companies whose annual revenues are greater than AED 50 million.
Eligibility to Free Zone Persons (QFZP) irrespective of revenue.
Special purpose financial statements (audited) should be prepared by tax groups according to the Ministerial Decision No. 84 of 2025.
In case of any mistakes or oversights being identified, the FTA could impose further evaluation, fines or administrative penalties. Voluntary disclosures can help businesses to avoid the punishment prior to final settlements.
Social Profiles