Tax Audit Rights & Procedures
Written in plain language for general understanding. This is educational content, not legal advice. Based on UAE federal decrees, laws, and ministerial decisions.
UAE Federal Law
What is this right?
The Federal Tax Authority (FTA) can audit your tax records. You have rights during this process:
- Notice: The FTA must give you at least 5 business days' notice before conducting a tax audit (except in urgent cases).
- Scope: The audit must be limited to the specific tax periods and matters stated in the notice.
- Right to representation: You can have your tax advisor or lawyer present during the audit.
- Confidentiality: All information collected during the audit is confidential and cannot be shared without authorisation.
- Time limit: The FTA must complete the audit and issue an assessment within 5 years from the end of the relevant tax period (15 years in fraud cases).
When does it apply?
- You or your business has been selected for a tax audit by the FTA.
- The FTA has questions or discrepancies regarding your tax returns.
- This applies to VAT, corporate tax, and excise tax audits.
What should you do?
- Cooperate with the audit — provide the requested documents and information on time.
- Engage a tax advisor before the audit begins to prepare your records.
- Keep organised records — poor record-keeping is the most common audit trigger.
- If you disagree with the audit findings, you have the right to file a reconsideration request with the FTA.
What should you NOT do?
- Do not ignore an audit notice — failure to cooperate can result in penalties of up to AED 20,000.
- Do not destroy or hide records — this is an offence under the Tax Procedures Law.
- Do not provide false information — tax evasion can lead to fines up to 3 times the amount of unpaid tax.
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