UAE Corporate Tax Audit

UAE Corporate Tax Audits are governed by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, along with FTA-issued executive regulations and guidance. These laws outline taxable income, exemptions, audit scope, and penalties for non-compliance.UAE Corporate Tax Audit

Is Audit of financials compulsory after UAE corporate tax implement

UAE Corporate tax – Audit of Financials statement

When Audit financials must as per UAE corporate Tax

Audited Financials Statement Necessity / compulsory in below cases:

1. For UAE Corporate Tax Audit compliance, all taxable persons must maintain audited financial statements if their revenue exceeds AED 50 million during the relevant tax period.
2. Audited accounts are essential to ensure accurate UAE Corporate Tax Audit calculations and proper tax return filings.UAE Corporate Tax Audit
3. Qualifying Free Zone Persons must submit audited financials to meet UAE Corporate Tax Audit requirements and retain the 0% tax benefit.
4. Failure to maintain audited records may result in loss of qualifying free zone status under UAE Corporate Tax Audit rules.UAE Corporate Tax Audit
5. Audited financial statements support exemptions, deductions, and relief claims reviewed during a UAE Corporate Tax Audit.
6. Private pension funds must provide audited accounts to obtain corporate tax exemption as part of the UAE Corporate Tax Audit process.
7. Social security funds are required to submit audited financials to demonstrate eligibility for exemption under UAE Corporate Tax Audit regulations.UAE Corporate Tax Audit
8. Audited records help businesses stay FTA audit-ready and minimize risks identified during a UAE Corporate Tax Audit.
9. They ensure alignment between financial statements and tax returns assessed in a UAE Corporate Tax Audit.UAE Corporate Tax Audit
10. Maintaining audited financials enhances transparency, credibility, and full compliance with UAE Corporate Tax Audit requirements.UAE Corporate Tax Audit

Other Important considerations:

• Audit must be done by UAE registered Auditors.UAE Corporate Tax Audit
• Tax group revenue must be total Tax Group revenue including parent and subsidiary
• Tax group need to get Audited for consolidated financials.UAE Corporate Tax Audit
• UAE Corporate Tax Audit

Source: Corporate Tax Guide | CTGACS1- November, 2023