Under Federal Decree-Law No. (28) of 2022 on Tax Procedures, a taxable person in the UAE is entitled to at least ten working days' advance notice from the Federal Tax Authority before a tax audit, plus the right to request the tax auditor's identification card, obtain a copy of the audit notification, attend an audit conducted outside the Authority's premises, and obtain copies of documents seized. Specific exceptions allow the Authority to enter without prior notice in cases of suspected tax evasion.
Notice Period Before a Tax Audit Begins
The law allows the Federal Tax Authority to conduct a tax audit on any person to verify compliance with the provisions of this Decree-Law or the Tax Law, and expressly provides that "the Authority shall notify the person of the tax audit at least ten (10) working days before carrying out the tax audit." The Authority may conduct the audit at its premises, at the place of business of the audited person, or at any other place where that person conducts business or stores goods or records.
Entry Without Prior Notice and Temporary Closure
As an exception to the prior-notice rule, the law allows the tax auditor to enter the audited person's place of business without prior notice, and to temporarily close that place for a period not exceeding "(72) seventy-two hours" in three cases: where the Authority has serious grounds to believe tax evasion is occurring; where not closing the place would obstruct the audit; or where a person already notified attempts to prevent the tax auditor from entering. These cases require prior written approval from the Director-General, and a permit from the Public Prosecution if the place to be entered is a residence. The place must be reopened after 72 hours unless the Authority obtains a Public Prosecution permit to extend the closure for a similar period.
Timing of the Tax Audit
Under the law, a tax audit is carried out during the Authority's official working hours, and the Director-General or a delegate may, where necessary, decide to conduct the audit exceptionally outside those hours.
Rights of the Audited Person
The law grants the person subject to a tax audit specific rights, including:
- Requesting the tax auditor to show their identification card.
- Obtaining a copy of the tax audit notification.
- Attending a tax audit conducted outside the Authority's premises.
- Obtaining copies of any original paper or digital documents seized or obtained by the Authority during the audit.
After the audit concludes, the Authority must notify the person of the audit result within the period and according to the procedures set by the Executive Regulation, and the audited person has the right to access or obtain the documents and data on which the Authority relied in assessing the payable tax and administrative penalties.
Duty of Cooperation During the Audit
In return, the law requires any person subject to a tax audit, or their tax agent or legal representative, to provide all possible facilities and assistance to enable the tax auditor to perform their duties, and the tax auditor may, during the audit, obtain original records or copies of them and take samples of goods, equipment or other assets.
Legal References
- Federal Decree-Law No. (28) of 2022 on Tax Procedures — Article (16), Article (17), Article (18), Article (20), Article (21), Article (22).
For questions about your specific situation, you can ask the UAE Tax & Legislation Helper on Helpers, or consult a licensed chartered accountant.