Corporate Tax Audit Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
Corporate Tax Audit Services in the UAE
Enter your FTA audit with organised records and a registered tax agent representing your position, not scrambling to explain gaps.
A Corporate Tax audit by the Federal Tax Authority is a formal review of a business’s tax records, returns, and financial data to verify accuracy and compliance. Being prepared, with accurate records, reconciled filings, and proper documentation, significantly reduces the risk of adjustments and penalties.
- Registered FTA tax agent, managing communication and representation throughout the audit process
- Full-cycle support, from pre-audit preparation through post-audit objections and voluntary disclosures
- Current on penalty reforms, including the restructured framework under Cabinet Decision No. 129 of 2025
Farahat & Co. provides specialist Corporate Tax audit support, helping businesses prepare for, manage, and respond to FTA audits with confidence.
Our Specialists In Corporate Tax
Romany Shayb
Senior Tax Consultant
Md. Kamruzzaman, FCA
Senior Tax Consultant
Ahmad Ali Jourieh
Senior Tax Consultant
Mohammed Ghoraba
Senior Tax Agent
Anas Al Salman
Corporate Tax Consultant
As a Trusted Corporate Tax Consultancy in the UAE, Farahat & Co. Offers the Following Corporate Tax Services:
FTA Audit Triggers and Timeline
The Federal Tax Authority may initiate a Corporate Tax audit under various circumstances, including suspected non-compliance, a request to cancel a tax registration, a large tax refund application, a member’s withdrawal from a tax group, or whenever the FTA considers a review necessary. Businesses should maintain audit-ready records at all times, regardless of whether an audit has been notified.
- The FTA can initiate an audit for up to five years after the end of the relevant tax period, or from the date the return was submitted, whichever is later
- If tax evasion or fraud is suspected, this window can be extended by a further five years, creating a potential ten-year audit horizon
- Taxable persons are generally entitled to advance notice, typically between two and ten working days, before a scheduled audit
- The FTA may conduct surprise audits without prior notice where there is a risk that information may be concealed or withheld
The Audit Process: Location, Documentation, and Cooperation
FTA Corporate Tax audits may be conducted at the FTA’s own offices, at the taxpayer’s place of business, or at any other location where business activities are carried out, depending on the complexity of the audit and the records involved.
During an audit, businesses are required to provide all requested information, records, and documentation within the deadlines specified by the FTA, and grant access to employees, business premises, and assets as needed. Effective preparation includes:
- Maintaining thorough financial records and supporting documentation, including invoices, contracts, bank statements, and accounting ledgers
- Ensuring Corporate Tax returns are fully reconciled with audited financial statements before and after filing
- Understanding the specific scope, records, and periods under review
- Engaging a registered FTA tax agent early to review documentation and manage communication throughout the process
Working with a registered tax agent ensures FTA requests are handled correctly and the business’s position is properly represented at every stage.
Agreed-Upon Procedures Reports for QFZP Distributors
Beyond standard Corporate Tax audits, businesses engaged in the distribution of goods or materials in or from a Designated Zone as a Qualifying Free Zone Person face an additional compliance requirement under FTA Decision No. 6 of 2026.
These businesses must obtain an Agreed-Upon Procedures (AUP) report from an independent external auditor, either the firm responsible for their annual audit or another UAE-licensed auditor, confirming that their customers genuinely qualify as resellers and that any imported goods entered the UAE through a Designated Zone. Prepared under ISRS 4400, the report must be submitted to the FTA within 30 days of the Corporate Tax return deadline. Missing this deadline means the business is treated as not having met its Qualifying Activity conditions, resulting in loss of the 0% Corporate Tax rate on that income for the period. We prepare this report alongside your existing audit and Corporate Tax compliance work.
Post-Audit Procedure and Corporate Tax Audit Penalties
After the audit is complete, the FTA issues a report covering all findings, recommendations, and observations, including any tax liabilities identified, overpaid, refundable, or outstanding. Following receipt of the audit report and any tax assessment, taxpayers have 30 days to challenge the findings through a formal objection, supported by relevant documentation.
Penalties for non-compliance are governed by Cabinet Decision No. 75 of 2023 (as amended by Cabinet Decision No. 10 of 2024) and Cabinet Decision No. 129 of 2025:
- Failure to register or notify the FTA of registration changes: a fixed penalty of AED 10,000.
- Late filing: AED 500 per month for the first 12 months, rising to AED 1,000 per month from the 13th month onward.
- Late payment: a flat 14% per annum, calculated monthly on the outstanding tax, effective 14 April 2026 under Cabinet Decision No. 129 of 2025.
- Errors discovered by the FTA: a fixed penalty of 15% of the unpaid tax amount.
- Voluntary disclosure of errors: a reduced 1% per month of the underpaid amount, calculated from the original filing deadline.
- Failure to facilitate a tax auditor’s work or provide requested documentation: a penalty of AED 20,000, which can apply to the taxable person, their legal representative, or their tax agent.
Because these figures are updated periodically, businesses should confirm the currently applicable amounts before assuming a specific figure applies to their situation.
Why Choose Farahat & Co. for Corporate Tax Audit Support
- Registered FTA tax agent, providing pre-audit preparation, document review, and direct representation before the FTA
- Full engagement lifecycle: from initial preparation through post-audit advisory, objections, and voluntary disclosure support
- Current regulatory knowledge, including the restructured penalty framework and QFZP-specific requirements under FTA Decision No. 6 of 2026
- Integrated approach: our audit support connects directly with our broader accounting, VAT, and Transfer Pricing teams
- Established track record: over four decades supporting UAE businesses across audit, accounting, and tax compliance