Understanding Corporate Tax Impact & Assessment Review in the UAE
A Practical Guide for CFOs, Managers, and Business Owners
With the UAE introducing Corporate Tax, businesses across the country are now navigating a new financial landscape. But many are still unsure how this tax applies to them—or what to do if they disagree with a tax assessment issued by the Federal Tax Authority (FTA).
That’s where two important steps come in:
- Corporate Tax Impact Assessment – to prepare your business for tax compliance.
- Tax Assessment Review – to challenge errors if the FTA’s assessment isn’t accurate.
What is a Corporate Tax Impact Assessment?
A corporate tax impact assessment is a health check for your business. It helps you understand how corporate tax applies to your company—before the FTA does. Think of it like this: Would you file your personal taxes without first checking your income, exemptions, and deductions? Probably not. The same logic applies to your business. An impact assessment looks at:- Your business structure
- Taxable income
- Exemptions, deductions, and reliefs
- Transfer pricing rules (if applicable)
- Any risk areas in your financial or accounting processes
Why Should Businesses Do a Corporate Tax Impact Assessment?
- ✅ Avoid penalties – Mistakes in tax filings could lead to heavy fines.
- ✅ Stay compliant – Tax laws in the UAE are new and evolving. An impact assessment keeps you aligned.
- ✅ Understand risks – You’ll know if your transactions or business model need changes to stay tax-efficient.
- ✅ Get audit-ready – FTA can audit your company. Being prepared helps avoid surprises.
Key Elements of the Assessment
- Review of financial statements
- Classification of income (taxable vs exempt)
- Deductibility of expenses
- Compliance with record-keeping
- Related party transactions
- Preparation for filing the Corporate Tax Return
Who Needs to Do an Impact Assessment?
Almost every business in the UAE with a license—commercial, freelance, or professional—needs to do one. Especially:- Mainland companies
- Free zone entities (even if claiming 0%)
- Multinationals with related party dealings
- Businesses with complex structures
- Companies unsure about exemptions or deductions
What is a Tax Assessment Review?
Once the FTA reviews your filings, they may issue a tax assessment with payable amounts and possible penalties. If you believe there’s a mistake, you can apply for a Tax Assessment Review. This is an optional process that lets you challenge the FTA’s assessment before filing a formal reconsideration. It’s handled by independent FTA officers who weren’t involved in the original audit.Who Qualifies for a Tax Assessment Review?
You can request a review if:- The FTA miscalculated your tax
- They relied on wrong or uncertified data
- You weren’t notified properly before an audit
- They assessed periods outside the allowed timeframe
- They didn’t request key documents from you during audit
- Your submitted documents were overlooked
- The audit process wasn’t followed properly
Eligibility to Apply
- You received a tax assessment and/or penalty from the FTA
- You haven’t already filed a reconsideration request
- Your documents were complete during the audit
- Your request is submitted within 40 business days of the assessment notice
How to Submit a Tax Assessment Review Request
- Prepare a written request explaining the grounds for review
- Attach only the documents that were already shared during the audit
- Send the request via email to: [email protected]
- If you can’t meet the deadline due to valid reasons, you may ask for an extension
What Happens After Submission?
- The FTA will respond within 40 business days
- If they need more time, they’ll inform you
- Once a decision is made, you’ll get a response in 5 business days
- ✅ FTA adjusts the tax assessment
- ❌ FTA rejects your request (if it doesn’t meet criteria)
- 🔁 FTA keeps the original assessment unchanged
When Should You Consider Reconsideration?
If you’re not happy with the review decision—or don’t get a response—you can file a reconsideration request.- ✅ This allows you to submit new evidence
- 🗓️ Must be done within 40 business days of receiving the review decision
Important Details to Remember
- Don’t delay—there are strict deadlines
- Keep your audit files complete and well-documented
- Don’t send new info during the review process (only allowed during reconsideration)
- Always double-check if your audit was valid (e.g., proper notice, legal timeframe, certified data)
How Miqat Helps
At Miqat Chartered Accountants, we simplify the complex. Our tax team helps businesses like yours:- ✅ Understand Corporate Tax impact
- ✅ Conduct full assessments with clear action points
- ✅ Identify any exposure or non-compliance risks
- ✅ Support you in filing Tax Assessment Review requests
- ✅ Guide you through reconsideration, if needed
What’s Included in Miqat’s Corporate Tax Assessment Service?
- 🔍 Business model and structure review
- 📊 Income and expense analysis
- 📁 Document readiness for FTA audits
- ✅ Risk scoring and practical recommendations
- 📄 Tax filing support
- 🧾 Help with Tax Assessment Review or Reconsideration (if needed)
