Federal Tax Authority (FTA) Initiates Post-Filing Clarification Requests on Corporate Tax Returns

FTA has commenced issuing post-filing clarification requests following the submission of UAE Corporate Tax returns. These requests aim to verify the accuracy and completeness of the submitted data by seeking additional information and supporting documentation.

Recent FTA clarification requests have included:

1. A detailed corporate structure outlining all branches and business locations
2. Explanations for unaudited financials or missing comparative figures
3. Complete Trial Balance for the reporting period, including opening, movement, and closing balances
4. Detailed account ledgers that reconcile with the Trial Balance
5. A comprehensive employee list, including names, joining dates, salaries, and benefits (with supporting documents)
6. Project-level sales reports with total sales, costs, and profit margins
7. Bank statements for the applicable financial year
8. Disclosures related to Connected Persons

These developments underscore the FTA’s increasingly thorough review process and its emphasis on transparency, accuracy, and complete documentation in  UAE Corporate Tax filings.

Key Takeaway:

Submitting your return is not the final step in tax compliance. Businesses must be prepared to:

1. Maintain accurate, organized, and auditable financial records
2. Ensure alignment between filed returns and supporting financial documents
3. Keep supporting schedules and justifications readily available
4. Respond promptly and precisely to FTA inquiries

The FTA’s approach highlights the critical need for ongoing compliance and robust documentation practices—even after returns are submitted.

Action Point:

Now is the time for businesses to reinforce internal controls, review documentation standards, and ensure readiness to provide any required information during the FTA’s post-filing reviews