Corporate Tax audit readiness means being able to explain the figures reported to the Federal Tax Authority, reconcile them to the company’s accounting records and provide supporting evidence without having to rebuild the tax position from scratch.

It does not mean that the business expects to be audited.

It also does not mean that receiving an FTA Tax Audit notice is itself a penalty or an indication that the business has necessarily done something wrong.

Under the UAE Tax Procedures Law, the Federal Tax Authority may conduct a Tax Audit to verify whether a Person has complied with the applicable tax legislation. The audit can involve commercial records, electronic data, documents and accounting systems.

For UAE businesses, the best approach is therefore to maintain an audit-ready Corporate Tax file as part of normal annual compliance rather than waiting for an FTA request.

This guide explains what Corporate Tax audit readiness looks like in practice, which reconciliations businesses should perform, what documents may be relevant and how finance teams should respond if the FTA requests information or conducts a Tax Audit.

What Is a UAE Corporate Tax Audit?

A Tax Audit is a procedure undertaken by the Federal Tax Authority to examine information and records in order to determine whether a Person has complied with the applicable tax obligations.

Under the Tax Procedures Law, the FTA may perform a Tax Audit on any Person to verify compliance.

The audit may take place:

• At the FTA’s premises.
• At the Person’s place of Business.
• At another location where the Person conducts Business.
• At a place where goods are stored.
• At a place where records are maintained.

The Executive Regulation also allows the FTA, for Tax Audit purposes, to inspect:

• Business premises.
• Documents and Assets.
• Electronically stored data and records.
• Accounting systems used by the Taxable Person.

This is important for modern businesses.

Corporate Tax audit readiness is not limited to keeping paper invoices in a filing cabinet.

The company may need to demonstrate how information is recorded and processed through its accounting systems.

Is an FTA Tax Audit a Penalty?

No.

A Tax Audit is a compliance procedure.

Its purpose is to verify whether the Person has met its obligations under the relevant tax legislation.

The audit itself should therefore not be described as a penalty.

Depending on the findings, the FTA may determine that no adjustment is necessary, or it may take further action under the Tax Procedures and Corporate Tax legislation where it identifies an issue.

Businesses should keep this distinction clear.

Receiving an audit notice should trigger a controlled review and response process, not an assumption that a violation has already been established.

MKCA’s Corporate Tax Penalties in the UAE covers penalties separately.

How Much Notice Does the FTA Give Before a Tax Audit?

Under the current Tax Procedures framework, the general rule is that the FTA must notify the Person of a Tax Audit at least 10 Business Days before conducting the audit.

The audit notice must also refer to the potential consequences of obstructing the Tax Auditor in carrying out their duties.

There are limited exceptional circumstances in which the Tax Auditor may enter relevant business premises without prior notice, subject to the conditions and approvals specified in the Tax Procedures Law.

Those situations can include serious grounds relating to suspected Tax Evasion, circumstances where not temporarily closing the location could hinder the audit, or an attempt to prevent the Tax Auditor from entering after advance notice has been given.

These are exceptional provisions.

Businesses preparing for ordinary Corporate Tax compliance should focus on maintaining accessible records and an organised response process rather than assuming that every audit will involve an unannounced visit.

What Can the FTA Examine During a Corporate Tax Audit?

Depending on the scope of the audit, the FTA may examine information that supports the company’s tax position.

For Corporate Tax, this can include areas such as:

• Financial Statements.
• Trial balances.
• General ledger.
• Revenue records.
• Purchase and expense records.
• Bank records.
• Asset registers.
• Inventory records.
• Financing arrangements.
• Related Party transactions.
• Corporate Tax computations.
• Tax Loss schedules.
• Elections and reliefs.
• Tax Credits.
• Contracts.
• Supporting correspondence.
• Electronic accounting data.

The exact information relevant to an audit depends on the circumstances.

Businesses should not interpret this as a fixed list that the FTA will request in every audit.

The practical objective is to ensure that material amounts and tax positions can be traced back to reliable evidence.

The Most Important Audit-Readiness Principle: Create an Evidence Trail

A strong Corporate Tax file should allow someone reviewing the business to move through the following sequence:

Corporate Tax Return

↓

Corporate Tax computation

↓

Tax adjustments

↓

Financial Statements

↓

Trial balance and general ledger

↓

Underlying transactions and supporting evidence

If one of these links is missing, the company may have difficulty explaining the tax position.

For example, it is not enough for a tax computation to show:

Non-deductible expenses: AED 85,000

The business should be able to explain:

• Which ledger accounts produced the AED 85,000.
• Which transactions were included.
• Why they were treated as non-deductible.
• What documents support the amounts.
• Who reviewed the treatment.

Audit readiness is therefore as much about reconciliation as document storage.

1. Reconcile the Corporate Tax Return to the Final Tax Computation

Start with the filed Corporate Tax Return.

Every material figure reported in the return should be traceable to the final approved Corporate Tax calculation.

A useful review should confirm:

Return area	Reconciliation question
Accounting Income	Does it agree to the final Financial Statements?
Tax adjustments	Is there a detailed supporting schedule?
Exempt Income	Can the amount and eligibility be evidenced?
Tax Loss Relief	Does it agree to the loss continuity schedule?
Foreign Tax Credit	Is foreign tax evidence available?
Related Party adjustments	Is the underlying analysis documented?
Corporate Tax Payable	Does it agree to the final computation?

Do not maintain one version of the tax computation for management and another unexplained version used for filing.

Keep the exact version supporting the submitted return.

2. Reconcile the Tax Computation to the Financial Statements

The Corporate Tax calculation generally starts with Accounting Income.

The Financial Statements used in preparing the return should therefore agree to the tax computation.

Confirm:

• Profit or loss.
• Revenue.
• Major expense categories.
• Finance costs.
• Other income.
• Asset disposal results.
• Relevant provisions.

Where there is a difference between the accounting figure and the tax computation, the adjustment should be documented.

An auditor or FTA reviewer should not need to guess why the Corporate Tax calculation differs from the accounts.

3. Reconcile the Financial Statements to the Trial Balance

The trial balance should be the accounting source for the Financial Statements.

Confirm that:

• The trial balance covers the correct Tax Period.
• Year-end journals are included.
• The Financial Statements agree to the final trial balance.
• The version has not changed after the Corporate Tax Return was filed.

It is good practice to retain a final locked trial balance as part of the annual Corporate Tax file.

If accounting records are later adjusted for another reason, the business should still be able to identify the version used for the filed return.

4. Keep Detailed Support for Corporate Tax Adjustments

Tax adjustments are often a key area of review because they explain how Accounting Income became Taxable Income.

Create a schedule showing:

Adjustment	Accounting amount	Tax adjustment	Reason	Evidence
Entertainment expenditure			Deduction limitation	Ledger + invoices
Fine or penalty			Non-deductible treatment	Ledger + supporting document
Exempt Income			Applicable exemption	Calculation + evidence
Interest adjustment			Applicable limitation	Financing schedule
Related Party adjustment			Arm’s length analysis	TP documentation
Tax Loss Relief			Loss utilisation	Loss schedule

The exact adjustments depend on the business.

The principle is consistent: every material adjustment should have a calculation and an explanation.

5. Reconcile Revenue Across Different Records

Revenue can appear in several systems.

Depending on the business, compare:

• Financial Statement Revenue.
• General ledger sales.
• Sales invoices.
• POS or e-commerce data.
• Accounts receivable.
• Bank receipts.
• VAT-reported sales where relevant.
• Corporate Tax Revenue.

These figures do not necessarily have to be identical.

Corporate Tax and VAT use different rules and may produce legitimate differences.

The important point is to understand material differences.

Example

A business may report accounting Revenue of AED 12 million while VAT returns reflect a different sales figure.

Possible reasons can include:

• Timing differences.
• Transactions outside VAT scope.
• Accounting accruals.
• Exempt transactions.
• Other income classification.

An audit-ready business should already have identified these differences.

It should not discover them for the first time after receiving an FTA request.

6. Reconcile Expenses and Material Deductions

For material expenses, the company should be able to demonstrate:

• What the expense relates to.
• Which supplier was paid.
• When it was recognised.
• Why it is connected with the Business.
• What Corporate Tax treatment was applied.

Useful supporting documents may include:

• Invoice.
• Contract.
• Purchase order.
• Payment evidence.
• Approval.
• Business correspondence.

A ledger entry alone may not explain the commercial substance of a transaction.

Focus on tax-sensitive expense accounts

Before an audit, review accounts such as:

• Entertainment.
• Donations.
• Fines.
• Professional fees.
• Management fees.
• Related Party charges.
• Interest.
• Employee benefits.
• Shareholder expenses.
• Provisions.
• Bad debts.
• Miscellaneous expenses.

This does not mean those accounts are automatically incorrect.

They simply tend to require more analysis than routine expenditure.

7. Review Related Party and Connected Person Transactions

Related Party transactions should be clearly identified before the FTA asks about them.

Prepare a schedule containing:

• Related Party name.
• Relationship.
• Transaction type.
• Amount.
• Outstanding balance.
• Agreement.
• Pricing basis.
• Corporate Tax treatment.

The Corporate Tax Law allows the FTA to request information supporting the arm’s length nature of transactions or arrangements with Related Parties and Connected Persons.

Where such information is requested under the relevant Corporate Tax provisions, the law provides a timeframe of 30 days following the request, unless the FTA directs a later date.

That makes advance preparation particularly important.

A business should not begin identifying Related Parties only after receiving a formal request.

8. Review Financing and Interest

Prepare a clear schedule for:

• Bank loans.
• Shareholder loans.
• Related Party loans.
• Interest expense.
• Interest income.
• Financing fees.
• Repayment terms.

Where interest-deduction limitations apply, keep the supporting calculation.

The business should be able to reconcile:

Loan agreement → interest calculation → ledger → Financial Statements → Corporate Tax treatment

If Related Party financing exists, also consider the applicable Transfer Pricing requirements.

9. Maintain a Tax Loss Continuity Schedule

Tax Losses can remain relevant across several Tax Periods.

Maintain a schedule showing:

Tax Period	Loss generated	Loss used	Loss transferred	Closing balance
Year 1
Year 2
Current period

Keep the supporting Corporate Tax calculations from each year.

Do not rely only on the current return showing a brought-forward amount.

The business should be able to explain where that amount originally came from.

10. Keep Evidence for Reliefs, Elections and Exemptions

If the Corporate Tax position depends on a relief, election or exemption, create a separate supporting file.

This can apply to areas such as:

• Small Business Relief.
• Participation Exemption.
• Qualifying Group Relief.
• Business Restructuring Relief.
• Foreign Permanent Establishment Exemption.
• Transitional rule elections.

The documentation should demonstrate:

1. What treatment was applied.
2. Which legal conditions were considered.
3. How the company satisfied those conditions.
4. How the amount was calculated.

Do not retain only the final numerical result.

11. Reconcile Fixed Assets and Disposals

Maintain a fixed asset register that agrees to the accounting records.

Review:

• Opening balances.
• Additions.
• Disposals.
• Depreciation.
• Gain or loss on disposal.
• Closing balances.

For material acquisitions or disposals, retain contracts and invoices.

Where transitional Corporate Tax rules affect a relevant asset, keep the supporting valuation and calculation.

12. Reconcile Inventory Where Relevant

Trading and manufacturing businesses should ensure that inventory records are reliable.

Maintain:

• Stock reports.
• Stock-count records.
• Valuation calculations.
• Write-offs.
• Slow-moving inventory provisions.
• Costing support.

The closing inventory figure can materially affect Accounting Income and therefore Corporate Tax.

A business with weak stock controls may struggle to support its tax computation even where the tax calculation itself appears correct.

13. Review Balance-Sheet Accounts, Not Just Profit and Loss

Corporate Tax reviews should not focus only on expenses and revenue.

Balance-sheet accounts can reveal important tax issues.

Review:

• Trade receivables.
• Trade payables.
• Shareholder accounts.
• Related Party balances.
• Accruals.
• Provisions.
• Loans.
• Investments.
• Fixed assets.
• Inventory.

For example, a large Related Party balance may indicate transactions requiring Transfer Pricing analysis even where the current-year profit and loss impact is relatively small.

14. Keep Corporate Tax Records Accessible for Seven Years

The Corporate Tax Law requires Taxable Persons to retain relevant records and documents for seven years following the end of the Tax Period to which they relate.

The records must support information submitted to the FTA and enable Taxable Income to be readily ascertained.

That requirement makes accessibility important.

A business should not simply ask:

“Do we still have the document?”

It should ask:

“Can we retrieve it quickly and understand what it relates to?”

An audit-ready archive should remain usable even if:

• Employees leave.
• Accounting software changes.
• The external accountant changes.
• The company migrates cloud platforms.
• Historical systems are decommissioned.

15. Make Sure Electronic Records Can Actually Be Retrieved

The FTA issued Decision No. 4 of 2026 dealing with the maintenance of information contained in accounting records and commercial books.

For businesses relying on electronic storage, records should be maintained in a manner that preserves the required information and allows access when requested.

A practical readiness review should test whether the business can retrieve:

• Historical invoices.
• Ledgers.
• Contracts.
• Financial Statements.
• Bank records.
• Supporting schedules.

Do not assume that a cloud backup is sufficient if nobody knows how to locate the relevant transaction.

Test an old period

Select a historical transaction and ask the finance team to retrieve:

1. The accounting entry.
2. The invoice.
3. The contract.
4. Payment evidence.
5. Applicable tax calculation.

If the exercise takes several days, the archive may technically exist but is not operationally audit-ready.

What Happens When the FTA Sends an Information Request?

Not every request for information is necessarily a full on-site Tax Audit.

The FTA may request information or supporting documents as part of administering the tax legislation.

The company should treat every formal request carefully.

Step 1: Confirm the request

Identify:

• Tax type.
• Tax Period.
• Entity.
• Requested documents.
• Deadline.
• FTA reference number.

Do not immediately send a large folder containing unrelated documents.

First understand what has actually been requested.

Step 2: Appoint one response owner

One person should coordinate the response.

Depending on the business, this may be:

• Tax Manager.
• Finance Manager.
• CFO.
• Registered Tax Agent.
• External Corporate Tax adviser.

This prevents different employees from sending inconsistent information separately.

Step 3: Create a request log

Use a simple tracker:

Request	Document owner	Status	Reviewed	Submitted
Financial Statements	Finance	Ready	Yes
Tax computation	Tax	Ready	Yes
Related Party agreement	Legal	Pending
Ledger extract	Accounting	Ready

Keep a copy of exactly what was submitted.

Step 4: Reconcile before submitting

If the FTA asks for revenue data, confirm that it agrees to the Corporate Tax position.

If the request concerns an expense, confirm the amount agrees to the ledger.

Do not submit contradictory schedules without understanding why they differ.

Step 5: Answer the question actually asked

Responses should be:

• Accurate.
• Complete.
• Clear.
• Supported.
• Limited to the relevant issue.

Avoid unnecessary speculation.

If a transaction requires technical tax interpretation, the business should obtain appropriate advice before providing an unsupported explanation.

What Happens After an FTA Tax Audit?

Under the Tax Procedures Executive Regulation, the Person subject to the Tax Audit is generally notified of the Tax Audit result within 10 Business Days of completion of the audit.

The Tax Procedures framework also provides the Person with rights concerning the information used by the FTA.

A Person subject to Tax Audit may request access to or copies of documents, data and information on which the FTA based the relevant Due Tax assessment.

Under the Executive Regulation, the application should generally be submitted within 20 Business Days from the notification of the Tax Audit result, subject to the applicable provisions and exceptions.

Businesses should therefore treat the audit-result stage as a formal process.

Do not rely only on informal discussions that took place during the audit.

What Rights Does a Business Have During an FTA Tax Audit?

The Tax Procedures Law provides rights to a Person subject to Tax Audit.

These include the right to:

• Request that the Tax Auditor show their official identification.
• Obtain a copy of the Tax Audit notification.
• Attend a Tax Audit taking place outside the FTA.
• Obtain copies of original paper or digital documents obtained or seized by the FTA during the audit, in accordance with the Executive Regulation.

The law also requires the Person, Tax Agent or Legal Representative to cooperate and provide assistance to the Tax Auditor.

Corporate Tax audit readiness should therefore include understanding both responsibilities and procedural rights.

Can the FTA Examine the Accounting System Itself?

Yes.

The Executive Regulation expressly refers to accounting systems used by the Taxable Person among the areas that may be inspected or audited.

For businesses using cloud accounting or ERP systems, this has practical implications.

The company should understand:

• Who has administrator access.
• How historical periods are retrieved.
• How transactions can be exported.
• Whether audit logs exist.
• How amendments or journal entries can be identified.
• Whether archived periods remain accessible.

The accounting system should support the evidence trail rather than make it more difficult.

Can the FTA Take Original Documents?

The Tax Procedures Law allows the Tax Auditor, during a Tax Audit, to obtain original records or copies and, in relevant circumstances, samples of goods, devices or other Assets, subject to the applicable controls.

The Executive Regulation contains additional procedures governing documents and Assets retained for Tax Audit purposes.

The 2026 amendments to the Tax Procedures Executive Regulation also introduced the possibility of extending the period for preservation or seizure of documents or Assets for Tax Audit and examination purposes.

Businesses should therefore maintain their own controlled record of any original documentation provided or retained during an audit.

Should a Business Carry Out Its Own Corporate Tax Audit Readiness Review?

For many companies, yes.

The review does not need to imitate an FTA audit.

The objective is to identify weak evidence and unexplained differences before they become urgent.

A practical internal review can focus on:

Return accuracy

• Does the Corporate Tax Return agree to the final computation?
• Does the computation agree to the accounts?

Reconciliations

• Does Revenue reconcile?
• Do material expenses reconcile?
• Does Corporate Tax payable reconcile?

Documentation

• Are material transactions supported?
• Are contracts available?
• Can historical records be retrieved?

Corporate Tax positions

• Are adjustments documented?
• Are relief conditions supported?
• Are elections documented?
• Are Tax Losses traceable?

Related Parties

• Are all Related Parties identified?
• Are agreements and pricing support available?

Systems

• Can the accounting system produce the required historical information?

Response process

• Does the company know who would manage an FTA request?

Corporate Tax Audit Readiness Checklist

Use this checklist before treating a Tax Period as audit-ready.

Filing

• Corporate Tax Return retained.
• Filing confirmation retained.
• Payment confirmation retained where applicable.
• Final Tax computation retained.

Accounting

• Final Financial Statements retained.
• Trial balance agrees to Financial Statements.
• General ledger remains accessible.
• Year-end journals can be explained.

Revenue

• Revenue agrees to accounting records.
• Material differences with VAT or other records are understood.
• Major contracts and invoices are available.

Expenses

• Material expense accounts reviewed.
• Deductibility adjustments documented.
• Supporting invoices and agreements retained.

Related Parties

• Related Party list complete.
• Connected Person transactions reviewed.
• Material agreements available.
• Transfer Pricing support retained where applicable.

Financing

• Loan agreements available.
• Interest schedules reconciled.
• Relevant deduction limitations reviewed.

Tax Positions

• Tax Loss schedule complete.
• Tax Credits supported.
• Reliefs documented.
• Elections documented.
• Exempt Income calculations retained.

Assets and Inventory

• Fixed asset register reconciled.
• Material asset transactions supported.
• Inventory records retained where applicable.

Records

• Seven-year retention requirement applied.
• Electronic records accessible.
• Legacy systems remain retrievable.
• Document owners identified.

FTA Response

• One internal response owner appointed.
• FTA request tracker available.
• Submission review process defined.
• Copies of information submitted to the FTA retained.

Common Corporate Tax Audit Readiness Mistakes

Mistake 1: Keeping the return but not the calculation

The return shows the final result.

It does not always explain how the result was derived.

Mistake 2: Assuming audited Financial Statements mean Corporate Tax is correct

A financial statement audit and a Corporate Tax review have different objectives.

Corporate Tax adjustments still need to be reviewed separately.

Mistake 3: Ignoring differences between VAT and Corporate Tax Revenue

Differences may be legitimate, but unexplained differences create unnecessary risk.

Mistake 4: Depending on the employee who prepared the return

Employees leave.

The documentation should allow someone else to understand the tax position.

Mistake 5: Storing files without reconciliation

A folder containing hundreds of invoices is not the same as a clear evidence trail.

Mistake 6: Waiting for an FTA notice before checking Related Parties

Related Party analysis can take time.

It should be part of annual compliance.

Mistake 7: Sending unreconciled information to the FTA

Review every schedule before submission.

The response should agree to the filed tax position or clearly explain the difference.

Mistake 8: Treating an audit notice as proof of a violation

A Tax Audit is a compliance verification process.

Do not describe the audit itself as a penalty.

For separate information on violations and administrative penalties, review MKCA’s Corporate Tax Penalties guide.

What If the Business Discovers an Error During Its Readiness Review?

Do not hide or ignore it.

The appropriate response depends on:

• The nature of the error.
• The Tax Period.
• Whether the return has already been filed.
• Whether Tax was understated or overstated.
• Whether the FTA has already contacted the business.
• The current Tax Procedures rules concerning correction or Voluntary Disclosure.

The Tax Procedures framework was amended with effect from 2026, including changes relating to Voluntary Disclosures and limitation periods.

Businesses should therefore avoid relying on old advice about how or when an error can be corrected.

If a material issue is discovered, review it against the current legislation before taking action.

MKCA’s guide to the UAE Tax Procedures Executive Regulation amendments provides additional context on the procedural framework.

How Often Should Audit Readiness Be Reviewed?

The most efficient approach is annual.

After each Corporate Tax Return is completed:

1. Finalise the filing package.
2. Complete the reconciliations.
3. Document material tax positions.
4. Confirm supporting evidence.
5. Archive the Tax Period.
6. Test accessibility.

For higher-risk or more complex businesses, some areas should be reviewed throughout the year rather than only at filing time.

Examples include:

• Related Party transactions.
• Large contracts.
• Corporate restructurings.
• Significant asset disposals.
• Financing transactions.
• Reliefs and elections.

This prevents the year-end Corporate Tax process from becoming a reconstruction exercise.

Frequently Asked Questions About UAE Corporate Tax Audits

Can the FTA audit a company for Corporate Tax?

Yes.

The Tax Procedures Law allows the Federal Tax Authority to conduct a Tax Audit on a Person to verify compliance with the applicable tax legislation.

How much notice does the FTA provide before a Tax Audit?

The general rule is at least 10 Business Days’ notice before the Tax Audit.

The law contains limited exceptions allowing action without prior notice in specified circumstances.

Does receiving an FTA Tax Audit notice mean we have committed a violation?

No.

A Tax Audit is a compliance verification procedure.

Any tax adjustment or penalty would depend on the applicable facts and findings.

Can the FTA inspect electronic accounting records?

Yes.

The Tax Procedures Executive Regulation expressly includes electronically stored data, records and accounting systems within the areas that may be examined during a Tax Audit.

How long should Corporate Tax records be kept?

Corporate Tax records and documents relevant to a Taxable Person should generally be retained for seven years following the end of the Tax Period to which they relate.

Can the FTA request Related Party information?

Yes.

The Corporate Tax Law permits the FTA to request information supporting the arm’s length nature of transactions or arrangements involving Related Parties and Connected Persons.

The law provides a 30-day timeframe for specified information requests, unless the FTA permits a later date.

How soon does the FTA communicate the audit result?

The Tax Procedures Executive Regulation provides that the Person subject to Tax Audit is notified of the result within 10 Business Days following completion of the audit.

Can we ask to see the information used by the FTA?

The Tax Procedures framework provides rights to request access to documents, data and information on which the FTA based the Due Tax assessment, subject to the applicable conditions and exceptions.

Is an external financial statement audit enough preparation for an FTA Corporate Tax Audit?

No.

Financial statement auditing and Corporate Tax compliance review are different processes.

Corporate Tax adjustments, reliefs, Related Parties and tax-specific calculations require separate consideration.

Should we give the FTA every document we have if they request information?

Respond to the formal request accurately and completely.

The business should understand the scope of the request, reconcile the information and maintain a record of what was submitted.

Where the request involves a complex legal or tax issue, professional review may be appropriate.

How MKCA Can Help With Corporate Tax Audit Readiness

Corporate Tax audit readiness is strongest when the accounting records, tax computation and supporting evidence are reviewed together.

MKCA can support UAE businesses with:

• Corporate Tax audit-readiness reviews.
• Accounting-to-tax reconciliations.
• Corporate Tax computation review.
• Review of tax adjustments.
• Record and evidence review.
• Related Party and transaction analysis.
• Tax Loss and Tax Credit schedules.
• Review of Corporate Tax reliefs and elections.
• Review of FTA information requests.
• Support in preparing reconciled documentation.

The objective is to identify gaps before the company needs to respond under time pressure.

Businesses that need support reviewing a complex Corporate Tax position or preparing for an FTA request can explore MKCA’s Corporate Tax Advisory Services.

Conclusion

Corporate Tax audit readiness in the UAE is not about predicting whether the FTA will audit a business.

It is about making sure that the company can demonstrate how its Corporate Tax position was calculated.

The strongest audit trail links the filed Corporate Tax Return to the tax computation, Financial Statements, trial balance, ledger and underlying supporting evidence.

Businesses should also reconcile Revenue, expenses, Tax Losses, Related Party transactions, financing, assets and other material tax positions before an FTA request arrives.

Records need to remain accessible for the required retention period, and finance teams should know who will coordinate any formal request or audit.

If those controls are built into annual Corporate Tax compliance, an FTA request becomes a structured documentation exercise rather than an emergency reconstruction of several years of accounting records.