FTA audit readiness
The Federal Tax Authority can audit a business under the Tax Procedures Law. An audit goes well when the records exist, can be found, and show what was held and when. Here is what to have ready.
An auditor asks where a number on a return came from. Each figure should lead back to the document it was taken from.
A Qualifying Free Zone Person must show adequate substance in the free zone (Article 18): its core income-generating activities, people and premises there. Keep the evidence: leases, payroll, board minutes and activity records.
Transactions with related parties and connected persons must follow the arm's length principle (Article 34). Keep the agreements and the basis for the prices.
When each document is attached to the obligation it satisfies, you can answer an auditor's request directly instead of searching inboxes.
A general guide, not legal or tax advice. Rules and fees change; check the current position with the authority or an adviser before you act.