With Corporate Tax now in force in the UAE, businesses must maintain proper financial records, tax documentation, and compliance procedures. A Corporate Tax audit is not a sign of wrongdoing — it is how the FTA verifies that businesses are accurately reporting taxable income.
What is a Corporate Tax audit?
A Corporate Tax audit is an examination conducted by the Federal Tax Authority (FTA) to verify the accuracy of your returns, records and supporting documentation.
- Accuracy of Corporate Tax returns
- Financial records and accounting entries
- Supporting documentation for expenses
- Related-party and transfer-pricing compliance
Why businesses should be audit ready
Being prepared reduces penalties, minimizes disruption, and demonstrates good governance.
- Reduces the risk of penalties
- Minimizes business disruption
- Builds confidence with stakeholders
Key documents to maintain
Maintain organized records that can be retrieved on request.
- Audited financial statements and trial balances
- Corporate Tax registrations and returns
- Sales and purchase invoices, contracts and bank statements
Common audit triggers
Certain factors may attract additional scrutiny.
- Significant or repeated tax losses
- Large or unsupported expense claims
- Related-party transactions
- Inconsistencies between VAT and Corporate Tax filings
How Capella can help
Capella assists with compliance reviews, audit preparation, transfer pricing and return reviews — keeping you audit-ready throughout the year.
