At SGA World UAE, we provide comprehensive Tax Audit Services tailored for businesses operating in Dubai, Abu Dhabi, and throughout the United Arab Emirates (UAE). In an era marked by the implementation of corporate tax laws, VAT compliance, and increasing scrutiny by the Federal Tax Authority (FTA), having a reliable partner to manage your tax audit obligations is essential. Our experienced team of certified public accountants (CPA), auditors, chartered accountants, and tax consultants helps ensure that your organization stays compliant, avoids penalties, and sustains financial integrity.
Whether you’re a multinational company, a public company, or a Small and Medium Enterprise (SME), we help you navigate every aspect of the tax audit process with confidence and accuracy.
Introduction to Tax Audit in UAE
A Tax Audit is a systematic review of your financial records, corporate tax returns, and VAT returns conducted to determine the accuracy of your reported financial position and tax obligations. These audits are performed by the FTA, often with support from other regulatory bodies like the Ministry of Finance, the Minister of Justice, and the Public Prosecution in severe cases of non-compliance or tax evasion. UAE’s tax environment demands precise reporting, robust accounting records, and proactive engagement with regulations. This makes professional audit support a necessity, not a luxury.
- Verifies accuracy of VAT and corporate tax filings
- Performed by FTA, with other authorities if needed
- Requires clear records and compliant reporting
- Professional support helps avoid penalties
- Detects errors, omissions, or signs of tax evasion
Objectives of a Tax Audit
in UAE
In Dubai
in Abu Dhabi
in UAE
In Dubai
in Abu Dhabi
Tax audit services in the UAE play a critical role in ensuring financial transparency and regulatory compliance. By confirming the validity of financial statements and corporate tax filings, audits help build trust and integrity within organizations. A well-executed tax audit UAE process also supports enhancing tax compliance by encouraging businesses to strictly follow UAE corporate tax law, VAT regulations, and Federal Law No. (7) of 2017. Through detailed examinations, auditors are effective in identifying discrepancies such as errors or intentional misstatements in income tax returns, gross receipts, and itemized deductions.
Ultimately, tax audits are instrumental in promoting accountability, holding businesses across Dubai, Abu Dhabi, and the wider UAE
responsible for adhering to national tax policies and frameworks.
Types of Tax Audits in UAE
The purpose of the audit is to ensure that the business complies with all applicable VAT laws and regulations.
Ensuring the correctness of VAT returns, input/output VAT reporting, and compliance with zero-rated and exempted supplies.
Investigating goods/services purchased without VAT but used within the United Arab emirates (UAE)
Conducted on-site at your place of business to review supporting documents, VAT records, financial documents, ledger entries, sales invoices, expense reports, and bank statements.
While income tax for individuals is not applicable in the UAE, businesses with foreign reporting obligations or branches abroad may be subject to audits under international agreements.
Focused reviews to assess compliance with the newly introduced federal corporate tax regime, including taxable income, exemptions, disclosures, deductions, and reporting accuracy.
International Relevance
At SGA World UAE, we stay aligned with global tax audit practices by closely monitoring standards set by leading authorities such as the UK’s HM Revenue and Customs (HMRC), France’s Direction Générale des Finances Publiques, and Germany’s Bundeszentralamt für Steuern. Our tax audit services also account for cross-border implications and international tax obligations, especially for clients holding Tax Domicile Certificates, those with international tax exposure, or individuals and entities engaged in self-assessment tax filings (Tax payments)
Who Can Be Audited?
SGA World UAE offers expert tax audit services aligned with global standards, including HMRC, France’s tax authority, and Germany’s BZSt. We help clients with Tax Domicile Certificates, cross-border tax exposure, and self-assessment compliance, ensuring full adherence to UAE and international tax laws.
- Businesses with annual turnover exceeding AED 375,000
- Companies registered for VAT and/or corporate tax
- Firms involved in high-risk sectors
The Tax Audit Process in the UAE
Audit Selection and Notification
Pre-Audit Preparation Stage
Onsite or Remote Audit Execution
Audit Findings and Reporting
Don’t leave your compliance to chance.
Contact SGA World UAE today for a professional audit readiness consultation and protect your business from costly penalties.
Risks of Non-Compliance
Tax compliance is not just a regulatory requirement—it's a safeguard against financial, legal, and reputational damage. Businesses that neglect audit preparedness or fail to meet UAE tax regulations may face serious consequences that can disrupt operations and reduce stakeholder trust.
Repeat non-compliance increases your audit rate and raises red flags with regulatory authorities, leading to stricter scrutiny in future assessments.
- Tax Registration Penalties
- Tax Registration Penalties
- Wage Garnishments
- Legal Prosecution under Reconciliation on Tax Evasion Crimes
- Loss of eligibility for Tax Relief, Penalty Reduction
Comprehensive Audit Readiness
and International Tax Support
Preparing for a tax audit and ensuring cross-border compliance requires more than just accurate records—it demands expert strategy,
robust internal controls, and awareness of international standards.
At SGA World UAE, we provide end-to-end support to help businesses remain audit-ready and globally compliant.
- Mistakes Leading to Corporate Tax Audits in the UAE
- Prepare for a Tax Audit in the UAE
- Role of SGA World UAE Tax
- Cross-border Taxation Support
Corporate tax audits in the UAE are often triggered by discrepancies or non-compliance in a company’s tax filings. The Federal Tax Authority (FTA) conducts audits to ensure that businesses are accurately reporting their tax obligations and adhering to UAE tax regulations. Below are some of the most common mistakes that can result in a tax audit:
- Incorrect reporting of income or expenses
- Lack of adequate financial records or documentation
- Improper classification of business transactions
- Non-compliance with UAE tax laws and executive regulations
- Delayed or missed tax return submissions
How to Avoid These Mistakes →
Ensure accurate and timely recording of all income and business expenses
Maintain complete records including invoices, receipts, and bank statements
Classify transactions in accordance with relevant tax frameworks
Regularly review and update your internal tax compliance procedures
Submit your tax returns on time
When a business is selected for a tax audit by the Federal Tax Authority (FTA), having the right guidance can make all the difference. Engaging experienced tax consultants in Dubai helps ensure your financial records, filings, and documentation are properly organized and compliant. With expert support, businesses can approach the audit process confidently and minimize the risk of penalties or delays. Below are key strategies to help your organization prepare effectively for a tax audit in the UAE.
Maintain organized accounting records, audited financial statements, and a financial activities log
Conduct internal statutory audits aligned with recognized audit standards
Ensure digital or cloud-based access to documents for fast, secure audit handling
Track all corporate tax services, consulting advice, and tax-preparation steps
Maintain evidence of charitable contributions, international payments, and inter-company transactions
We offer full-spectrum audit assistance including:
- Prepaid Audit Defense Plans
- Document Upload & Filing (Form 3CA/3CB)
- Internal control evaluation for Audit Committee presentation
- Coordination with legal representatives and Public Prosecution if required
- Managing disputes via the Tax Dispute Settlement Committee
- Taxpayer education through Taxpayer Advocacy support
Operate internationally with confidence. Our consultants help you navigate Double Tax Avoidance Agreements (DTAA), foreign tax credits, and cross-border VAT, ensuring legal and tax compliance in both the UAE and partner jurisdictions.
Our services are aligned with the highest international standards including IFRS, IAS, and practices followed by leading global tax authorities.
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UAE TaxGot Any Questions?
A Tax Audit is an examination of your company’s tax records, financial statements, and VAT returns by the Federal Tax Authority (FTA) to verify compliance with applicable tax laws. It may involve office audits, field audits, or correspondence audits, depending on the complexity and risk level determined by your DIF score or audit selection methodology.
Any business registered under corporate tax or VAT in the UAE, especially those with a turnover exceeding the registration threshold (AED 375,000), can be selected for an audit. Small and Medium Enterprises (SMEs) and Tax Residents are not exempt and may also be audited based on taxable income, sector, or filing behavior.
A field audit is conducted at your business premises where auditors review original documents and interview staff. In contrast, an office audit is carried out at the tax authority’s office, where you submit documentation and clarifications as requested. Both use structured tools like the audit checklist and may lead to corporate tax assessments.
You should have the following ready:\n- Complete tax records (VAT returns, income tax returns)\n- Form 3CB and supporting assessment year data\n- Financial statements prepared in accordance with IFRS\n- Input/output VAT transaction logs\n- Audit checklist documentation and internal financial controls\n- Any cloud-based accounting access (if applicable)
Business setup consultants assist in the correct structuring and registration of your business for tax purposes. Tax professionals, including enrolled agents, Chartered Accountants, and CPAs, help maintain corporate tax compliance, prepare for audits, and guide you through legal obligations like Federal Decree-Law No. (13) of 2016.
Taxable income is calculated based on your accounting profit (as per IFRS) after adjusting for exemptions, reliefs, and non-deductible expenses. The applicable tax rate is then applied to determine the corporate tax liability.
While UAE corporate tax applies broadly, Small and Medium Enterprises may benefit from simplified compliance and potential tax relief. However, they are still subject to corporate tax assessment, and must maintain audit-ready tax records.
Non-compliance can result in:\n- Tax Liens or freezing of assets\n- Assessment of Administrative Fines\n- Referral to Public Prosecution for evasion or fraud\n- Additional scrutiny in future audits due to increased audit rate
Yes. Using a cloud-based solution for accounting and document storage enhances efficiency, accuracy, and speed. It enables real-time document access during audits and reduces the risk of lost or outdated records. Many auditors prefer businesses that maintain digital compliance systems.
he Earned Income Tax Credit (EITC) is a tax benefit available in the United States, administered by the Internal Revenue Service (IRS), aimed at supporting low-to-moderate income workers by reducing their tax liability or offering refunds.
This credit does not apply in the UAE, as the country does not impose personal income tax. However, the concept highlights how different jurisdictions offer tax incentives. The UAE provides its own framework of reliefs, exemptions, and compliance-based benefits, mainly under corporate tax and VAT regulations, through the Federal Tax Authority (FTA).
To minimize your audit risk:\n- Ensure timely and accurate filing of all returns\n- Comply with FTA guidelines and maintain complete tax documentation\n- Engage qualified tax professionals for regular reviews\n- Stay compliant with corporate structuring, especially if recently setup\n- Keep your DIF score favorable through consistent compliance