Important Things to Keep in Mind About A Tax Audit

Important Things to Keep in Mind About A Tax Audit

Tax Audit in UAE is one of the important checks in order to verify an individual’s VAT liability is appropriate or not. This is done by internal and external auditing firms by considering the records displayed in front of the auditor which are maintained by a taxpayer. You can feel free to take the right guidance from the leading auditing service firms in the UAE.

The tax system in UAE is in trend and it is good for individuals to be familiar with the order to cope up with the era of tax audit in UAE. Not only this, it is beneficial for all the taxpayers to understand the working of the tax system in Dubai and the things to be kept in mind to comply efficiently. Basically, a tax audit is conducted to know whether a company is fulfilling the responsibility of a taxpayer or not. It is the way of government of UAE to analyze this properly and see that no one evades taxes.

Tax Audit in UAE:

Well if you are wondering as to if there is a tax audit in Dubai or not, then you must know that unlike any other country UAE also has tax audits. The Taxation system in Dubai is run by a body named as the Federal Tax authority (FTA) which is responsible to conduct audits for companies at any point of time.

Working of a tax audit:

There are mainly two important scenarios under which tax audit takes place. The two ways are either on the company’s premises or in the office itself. FTA will ask the company to generate and present documents that will be needed in the tax audit process and if a company fails to do so, there is a penalty for this act.

A company is required to present correct documents and fair records related to the financial statement of the business.

Know the following before starting the Tax audit preparation in Dubai:

Tax audit-checklist

It is always beneficial to hire an expert who will guide you with the requirements as he will have the relevant knowledge and expertise in the field. This can be beneficial for you as an individual and for the company as a whole. There is a number of auditing service providers in Dubai from which you can choose the best auditing service providers to get the best results.

Moving ahead, the points below must be kept in mind in order to be prepared for audit:

1. System Review:

The tax has been announced in UAE on 1st January 2018. The new aspect is being accepted all over UAE and the companies are becoming well prepared to comply with the new era of auditing services in the UAE. The first and most important aspect is to be updated with the accounting software. Next, is to obey the rules and regulations efficiently and be prepared for the audits.

2. Calculating the Tax:

The next aspect to be kept in mind is to be aware of calculating the taxable amount. The tax rate in Dubai is 5 percent so a businessman must be able to calculate the taxable amount accordingly. Again, you can feel free to take assistance from any famous auditing service provider in the UAE.

3. VAT Returns:

When you are paying taxes, you also file VAT tax returns and the auditing service firms’ help you review the returns you need to file and they will ensure that the things are done in the right manner. You need to consider the timeframe to file the tax and its return under the supervision of auditing service providers.

4. Taxable Payment Due:

In case any payment of tax is due, you are required to do the payment as and when required. Delays may cause you to pay extra charges which no company wants to pay. A well-qualified auditing service provider will keep the due dates into consideration and will help you keep updates regarding due dates and payments to be made on time.

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