Tax Audit Rights & Procedures in UAE
Reviewed by the Commoner Law Editorial Team. Sourced from UAE federal decrees, laws, and ministerial decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
The Federal Tax Authority (FTA) can audit your tax records. As the FTA ramps up enforcement following the introduction of corporate tax, audits are becoming more common. 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 where evidence may be destroyed).
- Scope: The audit must be limited to the specific tax periods and matters stated in the audit 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 by the FTA 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 cases of fraud or tax evasion).
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 VAT, corporate tax, or excise tax returns.
- This applies to businesses on the mainland and in free zones — free zone entities are not exempt from FTA audits.
What to Do If the UAE Federal Tax Authority Is Auditing Your Business
- Cooperate with the audit — provide the requested documents and information by the deadlines in the audit notice.
- Engage a tax advisor before the audit begins to prepare your records and represent you during the process.
- Keep organised records — poor record-keeping is the most common audit trigger. The FTA expects books to be maintained for 7 years.
- If you disagree with the audit findings, you have the right to file a reconsideration request with the FTA within 40 business days.
- You can access audit correspondence and documents through your EmaraTax account.
What should you NOT do?
- Do not ignore an audit notice — failure to cooperate can result in penalties of up to AED 20,000 and the FTA may issue an estimated assessment.
- Do not destroy or hide records — this is an offence under the Tax Procedures Law and can escalate to criminal prosecution.
- Do not provide false information — tax evasion can lead to fines up to 3 times the amount of unpaid tax plus potential imprisonment.
Common Questions
When does it apply — tax audit rights & procedures?
You or your business has been selected for a tax audit by the FTA.The FTA has questions or discrepancies regarding your VAT, corporate tax, or excise tax returns.This applies to businesses on the mainland and in free zones — free zone entities are not exempt from FTA audits.
What should I do if my business in the UAE receives a tax audit notice from the FTA?
Cooperate with the audit — provide the requested documents and information by the deadlines in the audit notice.Engage a tax advisor before the audit begins to prepare your records and represent you during the process.Keep organised records — poor record-keeping is the most common audit trigger. The FTA expects books to be maintained for 7 years.If you disagree with the audit findings, you have the right to file a reconsideration request with the FTA within 40 business days.You can access audit correspondence and documents through your EmaraTax account.
What should you NOT do — tax audit rights & procedures?
Do not ignore an audit notice — failure to cooperate can result in penalties of up to AED 20,000 and the FTA may issue an estimated assessment.Do not destroy or hide records — this is an offence under the Tax Procedures Law and can escalate to criminal prosecution.Do not provide false information — tax evasion can lead to fines up to 3 times the amount of unpaid tax plus potential imprisonment.