Prepare the records, reconciliations and tax working papers needed to explain your Corporate Tax return and respond to an FTA tax audit or information request.
Under the UAE Tax Procedures Law, a Tax Audit is a procedure carried out by the Federal Tax Authority to review records, information, data or goods and verify whether a person has fulfilled their tax obligations.
ZeroSync supports the business around that process. We can help reconcile the filed Corporate Tax return to the underlying accounts, organise evidence, identify gaps and coordinate responses to requests. The FTA controls the official audit, findings and any resulting assessment.
The Executive Regulation of the Tax Procedures Law states that the FTA normally provides at least 10 business days' notice before a tax audit. The law also contains circumstances in which different access procedures can apply.
The Tax Procedures Executive Regulation gives the FTA broad audit access to information relevant to tax obligations.
Article 21 of Federal Decree-Law No. 28 of 2022 gives a person subject to a Tax Audit rights that include requesting the tax auditor's professional identification, obtaining a copy of the audit notification, attending an audit conducted outside the FTA and obtaining copies of original paper or digital documents seized or obtained by the FTA in accordance with the applicable controls.
Keeping the audit communication and evidence log organised helps the business understand what has been requested, what has been provided and which matters remain open.
A readiness review starts with the financial information used to prepare the return. The business needs a clear bridge from accounting profit to taxable income, including the tax adjustments, exemptions, reliefs, elections, losses, credits and other items that affect the filed position.
| Layer | What the working file needs to show |
|---|---|
| Financial statements / trial balance | The accounting starting point for the Tax Period. |
| Tax adjustment bridge | How accounting profit moves to taxable income. |
| Tax computation | How the final Corporate Tax payable or other result was calculated. |
| Corporate Tax return | How the filed fields connect to the computation and supporting schedules. |
| Payment / credits | How tax payments, credits or balances tie to the taxpayer's records. |
Maintain evidence supporting the entity's status, activities, income classification and other conditions relevant to the tax treatment claimed.
Reconcile related-party transactions and keep the agreements, pricing method and transfer-pricing support relevant to the return.
Keep the eligibility analysis and calculations supporting any relief or election used for the Tax Period.
Support material deductible expenses and identify items that require limitation or special tax treatment.
Maintain continuity schedules where losses are carried forward or used in a later period.
Keep contracts and analysis for restructurings, asset transfers, financing or other material transactions.
Corporate Tax records and documents generally need to be kept for seven years after the end of the Tax Period to which they relate.
That makes the permanent tax file and the annual return file important even after the filing deadline has passed. Records also need to be retrievable if the FTA requests them later.
Record the request, date received, deadline and responsible owner.
Match each question to the relevant accounts, contracts and tax schedules.
Confirm that supporting figures agree with the filed tax position.
Prepare the requested documents and explanations in a controlled submission set.
Keep exactly what was submitted, together with correspondence and follow-up items.
If the business identifies an error in a return or tax position, the appropriate correction route depends on the type of error and when it is discovered. The Tax Procedures framework contains specific rules for Voluntary Disclosures and for matters identified before or after audit notification.
Do not submit a correction merely because an audit is expected. First identify the factual error, quantify the tax effect and determine which FTA procedure applies.
Material assessments, disputed legal interpretation, reconsideration or litigation can require specialist tax or legal advice beyond routine audit-readiness support.
Trial balance, reconciliations and consistency between supporting schedules and the final accounts.
Adjustments, deductions, reliefs, elections and the arithmetic linking taxable income to the return.
QFZP, related parties, connected persons, restructuring or other matters that depend on additional documentation.
Request tracking, evidence index, explanations, submitted documents and unresolved actions.
The list is tailored to the audit scope and the positions in the filed return.
| Response-pack component | Purpose |
|---|---|
| FTA request tracker | Records each request, deadline, owner, status and submission date. |
| Return reconciliation | Shows how the filed return ties to the tax computation and final accounts. |
| Evidence index | Lists contracts, invoices, calculations and records supporting each material position. |
| Technical position notes | Summarise the facts, applicable treatment and supporting analysis for complex items. |
| Submission copy | Preserves exactly what was sent to the FTA and when it was submitted. |
| Open-actions log | Tracks unanswered questions, additional evidence and remediation items. |
A tax audit can involve questions that cross accounting, tax, payroll, procurement, legal contracts, operations and group-company relationships. The response process is stronger when the relevant teams are using the same final data set and understand which schedules support the return.
Before an audit or major information request, we can help identify the records each team owns and the questions that may require input from outside the tax function.
The Federal Tax Authority conducts tax audits under the UAE Tax Procedures Law. ZeroSync's service is audit-readiness and response support, not the government audit itself.
The Executive Regulation of the Tax Procedures Law states that the FTA normally notifies the person at least 10 business days before conducting the tax audit, subject to the exceptions allowed under the law.
The Executive Regulation allows the FTA to inspect headquarters, documents and assets, electronically stored data and records, and accounting systems used by the taxable person.
A readiness file commonly includes the filed return, financial statements or trial balance, general ledger, tax computation, tax-adjustment schedules, related-party information, QFZP support where relevant, contracts, payments and other evidence supporting material tax positions.
Corporate Tax records and supporting documents generally need to be retained for seven years following the end of the Tax Period to which they relate.
Yes. We can help map each request to the supporting records, reconcile figures, prepare schedules and keep a controlled submission file.
No. Where a matter becomes a formal legal dispute or requires legal representation, an appropriately qualified legal professional may be required.
Share the FTA notice or the areas you want reviewed. We can help reconcile the return, organise the evidence and prepare a controlled response file.
