Definition

A Tax Assessment is a formal determination by the UAE Federal Tax Authority (FTA) of the amount of tax due from a business, often following an audit or review.

Key points

• May arise from late filings, underreporting, or FTA inspections.
• The assessed amount must be paid within the FTA’s specified timeframe.
• Can be disputed through the Reconsideration or Objection process.

Practical example

The FTA assesses a company for AED 20,000 in unpaid VAT after identifying errors in previous returns.

Why it matters

Tax assessments highlight discrepancies and ensure taxes are collected fairly and accurately.