Jiby Joseph, Partner, Jaxa Chartered Accountants Image Credit: Supplied

Taxation is now a reality for businesses in the UAE. With the introduction of corporate tax (CT) on June 1, 2023, the UAE transitioned from a non-tax economy to a tax regime, with the exception of personal income tax. With the onset of CT, the relevance of accurate audits has now come to the forefront. It’s now mandatory to comply with the International Financial Reporting Standards (IFRS) while preparing the financial statements and an audit is the mechanism to ensure adherence to these standards.

Previously, audits were being carried out only by certain free zone businesses owing to the mandatory requirement to submit annual audit reports and some mainland businesses for meeting submission requirements to banks. Now, we are witnessing a change as more businesses are opting for a formal audit to ensure compliance with CT. Audit is an effective tool that not only ensures accurate preparation of financial statements for taxation but it also helps streamline the accounting and reporting process. This is a crucial mechanism to ensure that businesses only incur taxes that are due legally and avoid payment of incorrect taxes due to miscalculations.

The role of a professional audit firms, with a proven track record in the UAE, is to ensure an accurate reporting, compliant with the country’s regulations. Their roles have become even more relevant under the new tax regime.

With over 16 years of experience in the field of audit and taxation in the UAE, Jaxa Chartered Accountants can facilitate support for accurate compliances. Jaxa is listed as approved auditors for all free zones in the UAE. The client base of the firm is over 1,500, which is a testament to the quality of services offered by Jaxa. For more information contact jaxa@jaxaauditors.com or call on 04 220 7355.