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The Ministry of Finance of the United Arab Emirates has declared a new Federal Corporate Tax (CT) system would be incorporated in the country. Under this, applicable companies must submit a mandated corporate tax audit in the UAE.
The government of the UAE is taking this action to comply with international tax requirements while lowering the financial pressure of complying with UAE businesses and protecting start-ups and small enterprises. This aligns with similar actions in neighbouring Gulf states like Bahrain that implemented corporate tax for exploration and hydrocarbon firms. The UAE will continue to have some of the lowest corporate tax rates in the world. The UAE is home to Dubai, a significant global financial centre.
A corporate tax audit examines a company’s tax liability, compliance, and financial records to see if it meets the requirements. To find any inconsistencies or mistakes made during the process, Rewind Consultancy, one of the top audit companies in the United Arab Emirates, examines the financial accounts, tax filings, and other files.
The UAE’s government also demands a corporate tax audit report to ensure that the taxable organisation is complying to the corporate tax law and standards as per FTA guidelines. The FTA examines whether the taxable organisation has paid off all debts and whether all taxes owed have been collected and submitted to the appropriate authorities within the time frame given by the tax audit.
A corporate tax audit examines a company’s tax liability, compliance, and financial records to see if it meets the requirements. To find any inconsistencies or mistakes made during the process, Rewind Consultancy, one of the top audit companies in the United Arab Emirates, examines the financial accounts, tax filings, and other files.
The UAE’s government also demands a corporate tax audit report to ensure that the taxable organisation is complying to the corporate tax law and standards as per FTA guidelines. The FTA examines whether the taxable organisation has paid off all debts and whether all taxes owed have been collected and submitted to the appropriate authorities within the time frame given by the tax audit.
Financial Statements: This includes the company’s balance sheet, income statement, and cash flow statement. These statements provide an overview of the company’s financial position, performance, and cash flows during a specific period.
Books of Accounts: This encompasses general ledger, journals, and subsidiary ledgers. These records detail all financial transactions undertaken by the company, including sales, purchases, expenses, and other financial activities.
Tax Returns and Declarations: The company’s tax returns, including VAT returns if applicable, and any related declarations submitted to the tax authorities. These documents provide information on the company’s tax liabilities and compliance with tax regulations.
Supporting Documents for Expenses and Deductions: This includes invoices, receipts, contracts, agreements, and other supporting documents for expenses claimed and deductions taken by the company. Proper documentation is crucial to substantiate the legitimacy of expenses and deductions claimed.
Corporate Governance Documents: This may include board meeting minutes, resolutions, shareholder agreements, and other corporate governance documents. These documents provide insights into the company’s decision-making processes and corporate structure.
Documentation of Related Party Transactions: If the company engages in transactions with related parties, documentation such as contracts, invoices, and transfer pricing documentation may be required to demonstrate that these transactions are conducted at arm’s length and comply with tax regulations.
As per the Ministerial Decision No.82 of 2023, taxable organisations must prepare and maintain audited financial statements for corporate tax if they meet certain requirements below –
It is crucial to remember that company tax audits in the UAE are conducted based on the above standards rather than randomly. To avoid potential fines or penalties from a tax audit, companies should abide by all applicable tax laws and regulations.
It is crucial to remember that company tax audits in the UAE are conducted based on the above standards rather than randomly. To avoid potential fines or penalties from a tax audit, companies should abide by all applicable tax laws and regulations.
Here are the necessary steps we follow while conducting a corporate tax audit –
Note: The qualifying party can also ask for the qualifications or credentials of the auditors.
Note: The qualifying party can also ask for the qualifications or credentials of the auditors.
Rewind Consultancy is the best corporate tax audit consultancy in the UAE to offer professional and expert corporate tax audit services. With years of experience in the field, we have the required knowledge and expertise to offer the best services on corporate tax, which includes –
Rewind Consultancy offers expert guidance and support to businesses facing corporate tax audits in the UAE. Our experienced team assists in preparing required documents, ensuring compliance with tax regulations, and representing clients during audits. With profound knowledge of UAE tax laws, Rewind Consultancy helps small and big companies navigate the audit process efficiently, minimising potential penalties and optimising tax outcomes.
Rewind Consultancy offers expert guidance and support to businesses facing corporate tax audits in the UAE. Our experienced team assists in preparing required documents, ensuring compliance with tax regulations, and representing clients during audits. With profound knowledge of UAE tax laws, Rewind Consultancy helps small and big companies navigate the audit process efficiently, minimising potential penalties and optimising tax outcomes.
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