If the Federal Tax Authority notifies you of a corporate tax audit, the first fact to hold on to is this: the FTA must give you at least 10 business days' notice before the audit starts, and the audit itself happens at your premises, at the FTA's headquarters, or wherever you store your records — during the FTA's normal business hours. This guide walks through what the notice means, what the FTA can inspect, your rights, and the one mistake that carries a AED 20,000 penalty.
The rules of a UAE corporate tax audit
The audit powers and notice rules come from Federal Decree-Law No. 28 of 2022 on Tax Procedures and its Executive Regulation (Cabinet Decision No. 74 of 2023), Article 16–17, checked September 2026.
| Rule | What it means for you |
|---|---|
| Notice period | The FTA must notify you of the tax audit at least 10 business days before it starts, and the notice must warn of the consequences of obstructing the auditor |
| Where the audit happens | Your premises, the FTA's headquarters, or elsewhere where you carry out business, store goods or keep records |
| When | During the FTA's normal business hours; beyond them only in extraordinary circumstances by decision of the Director-General or his representative |
| What can be inspected | Your premises, documents and assets, electronically stored data and records, and the accounting systems you use |
| Choosing to re-audit | The FTA's decision to audit — including a person it has audited before — is at its sole discretion and cannot be objected to or challenged |
Your first 10 business days
① Read the notice: which tax periods, which taxes, where the audit takes place. ② Pull the returns and supporting records for those periods. ③ Reconcile them against your ledgers now, not during the audit. ④ Appoint one point of contact — internally or a tax advisor — so every FTA request goes through one channel. Never obstruct the auditor — facilitation failures carry a AED 20,000 penalty.
What the FTA will ask you for
The FTA expects corporate tax records to be complete enough to verify every figure in your return. Under the Corporate Tax framework, taxable persons must retain the records supporting their returns — a record of transactions, assets (with purchases and disposals), liabilities, and shares held at period end — for at least seven years after the end of the tax period (FTA record-keeping reminder, 27 August 2025). For the audit itself, that usually means:
- The corporate tax returns for the periods under audit, with the filed acknowledgments.
- Financial statements and the general ledger behind them.
- Tax invoices, contracts and import declarations supporting revenue and expenses.
- Related-party transaction documentation and, where applicable, transfer pricing records.
- Registration documents and your Tax Registration Number (TRN).
Your rights during the audit
The FTA Taxpayer Charter gives you the right to fair, professional and respectful treatment, consistent application of the tax legislation, privacy and confidentiality of everything you provide, consideration of facts and circumstances that affected your compliance, representation by a listed tax agent or appointed legal representative, and the right to complain about the service or conduct you experience.
After the audit: assessment and your next moves
If the audit finds a discrepancy, the FTA issues a tax assessment. Once notified, you generally have 20 business days from the date of receipt to pay the assessed tax — the same 14%-per-annum late-payment penalty (charged monthly on unpaid amounts) applies from the day after that due date under Cabinet Decision No. 40 of 2017 as amended, effective 14 April 2026. If you disagree with the outcome, you can submit a request for reconsideration through EmaraTax — and the FTA can extend deadlines where non-compliance was caused by events outside your control, such as a serious illness, a business disruption or a systems malfunction, evidenced per FTA Decision No. 1 of 2025.
Mistakes that turn a routine audit into a penalty case
- Obstructing or failing to facilitate the auditor. A AED 20,000 penalty is imposed on the person, their tax agent or legal representative, payable from their own funds (Cabinet Decision No. 40 of 2017 as amended, Table 1, violation 13).
- Missing records. Failure to keep the required records carries a AED 10,000 penalty per violation, rising to AED 20,000 for a repeat within 24 months.
- Scrambling when the notice arrives. With 10 business days' notice, an unreconciled ledger is a choice. Businesses that reconcile before the auditor arrives rarely see the audit change their tax position.
An audit notice is easier to face when the underlying books are clean year-round. Finanshels' bookkeeping services keep the ledger audit-ready, audit services stress-test your records before the FTA does, and corporate tax filing keeps the returns the auditor will pull.
Related terms in a corporate tax audit
A few related concepts come up during an audit: a tax assessment is the formal outcome the FTA issues once the audit finds a discrepancy; a reconsideration request lets you ask the FTA to revisit its own decision within 40 business days; the Tax Dispute Resolution Committee is the independent escalation route if you disagree with the FTA's review outcome; and transfer pricing documentation is one of the most commonly requested record sets in a related-party-heavy audit. Our guide on appealing a corporate tax penalty covers what happens after an assessment is issued.
FAQs
How much notice does the FTA give before a corporate tax audit?
At least 10 business days, under Article 16 of Federal Decree-Law No. 28 of 2022 and its Executive Regulation. The notice must also state the consequences of obstructing the audit.
What happens if I obstruct or fail to facilitate a tax auditor?
A AED 20,000 penalty applies to the person, their tax agent or legal representative under Cabinet Decision No. 40 of 2017 as amended, payable from their own funds.
How long must I keep records the FTA can audit?
At least seven years after the end of the relevant tax period, per the Corporate Tax framework and the FTA's record-keeping guidance.
Can I object if I disagree with the audit outcome?
Yes — you can request reconsideration through EmaraTax, and if the disagreement remains, escalate to the Tax Dispute Resolution Committee within the applicable deadlines.
Last reviewed: September 2026 by Gautam Sanoj, Associate Manager – Tax Advisory, Finanshels. Rules as of Federal Decree-Law No. 28 of 2022 on Tax Procedures; verify current requirements against the FTA (tax.gov.ae) before acting.
