Understanding the common audit triggers in your UAE corporate tax return is key to avoiding penalties. Stay compliant by identifying these top 10 UAE corporate tax audit triggers and ensure accurate corporate tax return filing.
| Sr No | Audit triggers | Particulars |
| 01 | Inconsistent Revenue Reporting | Declaring revenue figures that don’t match VAT returns, audited financials, or bank statements |
| 02 | Unusual or Excessive Deductions | Claiming high or suspicious business expenses (especially travel, entertainment, or consulting) that aren’t well substantiated. |
| 03 | Related Party Transactions Without Documentation | Lack of proper Transfer Pricing disclosure, especially with shareholders, group companies, or offshore entities. |
| 04 | Failure to Maintain Proper Records | Incomplete or missing supporting documents for expenses, income, or fixed asset depreciation. |
| 05 | Mismatch Between Financial Statements and Tax Return | Declared taxable income doesn’t reconcile with profit and loss account submitted with the return. |
| 06 | Late or Non-Filing of Returns | Filing after the due date or failure to file attracts both penalties and higher scrutiny. |
| 07 | Negative or Minimal Taxable Income Over Multiple Years | Reporting persistent losses or minimal profits without justification could indicate under-reporting. |
| 08 | Frequent Amendments or Corrections in Filed Returns | Multiple revisions of corporate tax returns may raise flags on the accuracy and reliability of the information. |
| 09 | Improper Classification of Business Activities | Claiming exempt income or free zone benefits when the nature of business doesn’t qualify. |
| 10 | VAT Non-Compliance Linked to Corporate Tax Filing | Discrepancies between Corporate Tax and VAT, reports can trigger cross-audits by the FTA. |
Avoid costly penalties by knowing the 10 common audit triggers in your UAE corporate tax return. Ensure accurate UAE corporate tax return filing and stay compliant with corporate tax regulations in the UAE.