Tax Audit Services in Dubai
OUR TAX SERVICES
TAXATION
Tax Advisory / VAT
- VAT registration
- VAT return filing
- VAT deregistration
- Transaction advisory
Corporate Taxes
- Corporate tax registration
- Corporate tax return filing
- Corporate tax eligibility and exemptions
- Assessment and advisory on tax implications
- Calculation of taxable income
- Preparation of tax documentation
ADVANTAGES OF HIRING A TAX AUDIT SERVICE IN THE UAE
Compliance with local tax regulations
A tax audit ensures proper compliance with tax obligations in the UAE, especially in VAT matters, avoiding errors arising from frequent regulatory changes.
Prevention of penalties and contingencies
It allows the detection of inconsistencies, omissions, or tax risks before an official inspection, reducing the likelihood of fines, surcharges, or penalties.
Preparation for tax authority audits
It helps ensure your company is prepared for potential reviews by the Federal Tax Authority (FTA), with clear, organized documentation in line with current regulations.
Optimization of the tax structure
A tax audit not only reviews errors but also identifies opportunities to improve tax management, always within the UAE legal framework.
Peace of mind and security for your business
Having local specialists provides legal certainty, time savings, and confidence that your tax situation is properly managed.
WHAT TYPES OF TAX AUDITS DO WE CARRY OUT?
VAT tax audit
We review the correct application of VAT in the United Arab Emirates, including returns, records, and supporting documentation. We detect errors that may result in penalties or adjustments by the FTA.
Preventive tax audit
We analyze your tax situation before an official inspection takes place. This allows us to identify risks and correct them proactively, avoiding future contingencies.
Tax audit prior to FTA inspections
We prepare your company for a potential review by the Federal Tax Authority. We verify that all documentation is complete, consistent, and aligned with current regulations.
Internal tax audit
We assess internal tax processes to ensure proper control and ongoing compliance. This type of audit improves organization, traceability, and your company’s overall tax security.
PROCES
Initial analysis of the tax situation
A preliminary assessment of the company’s tax structure, activities, and tax obligations in the UAE is carried out to identify risk areas and define the scope of the audit.
Review of VAT returns
We analyze the submitted returns to verify the correct application of VAT, the consistency of the declared amounts, and compliance with the deadlines set by the tax authority.
Verification of accounting records and documentation
We check that accounting records, invoices, and supporting documents comply with the requirements established by the current tax regulations in the United Arab Emirates.
Identification of tax risks and contingencies
We detect potential errors, omissions, or practices that could lead to penalties, tax adjustments, or issues during a future FTA inspection.
Preparation of the audit report
We provide a clear and detailed report with the audit results, including identified issues, risk level, and specific recommendations for improvement.
Support in correcting issues
We advise the company on implementing the necessary corrective measures to regularize its tax situation and strengthen ongoing compliance.
WHO IS THIS SERVICE FOR?
This tax audit service is aimed at companies operating in the United Arab Emirates that need to ensure proper compliance with tax regulations, minimize risks, and avoid tax contingencies, such as:
| Company profile | Description |
|---|---|
| Companies registered in the UAE | Companies operating in the United Arab Emirates that need to ensure compliance with current tax regulations, especially VAT requirements. |
| Free Zone companies | Businesses established in Free Zones that require a tax review to avoid errors arising from specific regimes or incorrect interpretation of regulations. |
| International companies | Foreign companies with presence or activity in the UAE that need to adapt their tax structure to the local legal framework and reduce risks due to lack of regulatory knowledge. |
| VAT-registered companies | Companies required to file VAT returns that want to validate that their filings, records, and documentation meet the tax authority’s requirements. |
TAX AUDIT VS TAX INSPECTION
- A tax audit is a voluntary and preventive process that allows a company to review its tax position in advance, detect errors, and correct potential risks before the tax authority intervenes. Its main objective is to ensure regulatory compliance and minimize future contingencies.
- In contrast, a tax inspection is a procedure initiated by the tax authority, in which the company is required to justify its filings and documentation before the Federal Tax Authority. In this case, any errors detected may result in penalties, tax adjustments, and financial sanctions.
- Having a prior tax audit allows a company to anticipate a potential inspection, properly prepare the required documentation, and face any official review with greater confidence and peace of mind.
MAIN TAX RISKS FOR COMPANIES IN THE UAE
Companies operating in the United Arab Emirates may face various tax risks if they do not properly comply with current regulations, especially regarding VAT and documentation obligations.
| Tax risk | Description |
|---|---|
| Errors in VAT returns | Incorrect application of VAT, errors in declared amounts, or lack of consistency between returns and accounting records. |
| Lack of valid documentation | Absence of invoices, records, or supporting documents required by regulations, which may lead to tax adjustments or penalties. |
| Non-compliance with tax deadlines | Late submission of returns or payments, resulting in automatic fines imposed by the Federal Tax Authority. |
| Incorrect application of exemptions | Improper use of exemptions or reduced tax rates without meeting the legal requirements established in the UAE. |
| Lack of awareness of regulatory changes | Failure to adapt internal processes to updates in tax regulations, increasing the risk of unintentional non-compliance. |
WHO ARE WE?
With a solid track record working with international companies headquartered in the United Arab Emirates, LocaBase specializes in assisting clients with the incorporation, restructuring, and expansion of businesses in the Middle East, as well as providing accounting and tax advisory services, with a particular focus on European companies. We also offer specialized advice to clients seeking to invest in real estate in the region, efficiently managing all tax and administrative requirements.
At LocaBase, we are proud to be a driving force for positive change in the business world. Our company offers a unique combination of strategic vision, innovation, and access to a favorable business environment in Dubai, creating the perfect foundation for business success.
Marina R. L.
LORCABASE ADVANTAGES
LorcaBase stands out for its comprehensive tax approach, covering everything from strategic planning to the day-to-day management of regulatory compliance in the United Arab Emirates.
Comprehensive advisory with experts
With a team of tax and accounting advisors and specialists in UAE regulations, we offer full management of all your tax obligations.
Personalized support
From the initial assessment of your tax situation to the filing of returns and the resolution of issues, we support you at every stage.
Speed in compliance
Thanks to our experience and local expertise, we ensure that filings are submitted correctly and on time, avoiding penalties or unnecessary reviews.
End-to-end support
We do not limit ourselves to preparing returns; we supervise your entire company’s tax cycle. We offer a complete view that covers both day-to-day operations and strategic tax planning.
Experience in the Emirati market
We have in-depth knowledge of UAE tax regulations and FTA practices. This experience allows us to anticipate risks, identify optimization opportunities, and ensure solid and secure compliance at all times.
WHAT PEOPLE SAY ABOUT US
WHAT OTHER RELATED SERVICES DO WE OFFER?
Company incorporation
Our team provides a complete company incorporation service in Dubai, managing licenses, corporate structures, legal requirements, and bank account opening.
Corporate solutions
We offer tailored corporate solutions that include bank account opening, license management, visa services, company liquidation, among other options.
Accounting and Finance
We provide a comprehensive accounting service that ensures regulatory compliance and financial control for your Dubai-based company, with full transparency and efficiency.
M&A
We advise on merger, acquisition, and company sale processes, carrying out thorough financial and legal analyses to ensure secure and efficient transactions.
FAQs
Is a tax audit mandatory in the United Arab Emirates?
It is not mandatory in all cases, but it is highly recommended to ensure compliance with tax regulations and reduce risks in the event of a possible FTA inspection.
Which taxes are reviewed in a tax audit in the UAE?
Primarily VAT, although obligations related to tax registrations, accounting documentation, and general regulatory compliance are also reviewed.
How often should a tax audit be carried out?
It is most advisable to carry it out annually or before an inspection, especially if your company files periodic VAT returns.
What documentation is required for a tax audit?
VAT returns, issued and received invoices, accounting records, contracts, and any documentation required by the Federal Tax Authority.
What happens if errors are detected during the tax audit?
Recommendations are prepared to correct them and, if necessary, support is provided for voluntary regularization before the tax authority.
Does a tax audit prevent an FTA inspection?
No, it does not prevent it, but it allows the company to be prepared and significantly reduces the risk of penalties in the event of an inspection.
Can an international company carry out a tax audit remotely?
Yes, a large part of the process can be carried out remotely, as long as the necessary documentation is available.
Does LorcaBase also help with company formation, in addition to managing taxation?
Yes. We offer a complete company formation service, including licensing and bank account opening, so your business can operate in Dubai quickly and legally.
Contact us to receive more information about our services!