Tax Advisory for UAE & GCC
Countries

The timing for UAE enterprises to conduct audits primarily depends on the company's registration type and fiscal year. Below are the specific scenarios:

1. UAE local enterprises: Within 3 months of the company's establishment, the enterprise must submit tax registration. Within 3 months after the end of each fiscal year, the enterprise must submit a tax audit.

2. Non-resident legal entities: For non-resident legal entities before March 1, 2024, if they have a permanent establishment in the UAE, they must submit a tax audit application within 9 months of the permanent establishment's existence. For non-resident legal entities with nexus in the UAE, they must submit a tax audit application within 3 months from the effective date of the decision.

For non-resident legal entities on or after March 1, 2024, if they have a permanent establishment in the UAE, they must submit a tax audit application within 6 months of the permanent establishment's existence. For non-resident legal entities with nexus in the UAE, they must also submit a tax audit application within 3 months from the effective date of the decision.

The main contents of UAE enterprise audits include the following aspects:

1. Tax return review: Thoroughly examine the company's tax returns to ensure accurate tax rate calculations for all taxable transactions, especially import/export goods tax records.

2. Accounting data verification: Compare the company's financial books with tax return data to resolve potential discrepancies in advance and ensure data consistency.

3. Record retention system: Properly retain all relevant tax invoices, customs documents, and financial records, which will serve as key evidence during audits.

4. Auditor appointment: UAE law requires limited liability companies to appoint one or more auditors annually to review company accounts, check balance sheets and profit/loss statements, examine transactions with related parties, and verify compliance with UAE company law and articles of association.

5. Communication and coordination: Maintain smooth communication with FTA auditors and promptly respond to audit requirements to ensure efficient progress.

Through these audit measures, companies can ensure tax and financial compliance and effectively avoid potential tax risks from regulatory violations.