Tax Risk Management, Governance & Policy Frameworks

Strengthening Compliance, Control, and Tax Transparency

In an evolving regulatory environment such as the United Arab Emirates, effective tax risk management and governance are no longer optional—they are essential components of sustainable business operations. With the implementation of UAE Corporate Tax under Federal Decree-Law No. 47 of 2022, alongside existing VAT and Excise Tax regulations, businesses are expected to demonstrate structured internal controls, documented tax positions, and clearly defined governance frameworks. Tax authorities increasingly assess not only numerical accuracy but also the robustness of tax policies, decision-making processes, and risk oversight mechanisms.

Essence Accounting and Tax Consultancy LLC supports organizations in establishing comprehensive tax risk management systems that align with Federal Tax Authority requirements, international best practices, and corporate governance principles. Our approach focuses on identifying, assessing, monitoring, and mitigating tax risks across all applicable tax heads while embedding compliance into daily business operations.

Tax Risk Identification and Assessment

Effective tax risk management begins with a structured identification and evaluation of potential exposures. We conduct detailed reviews of corporate tax, VAT, excise tax, and cross-border transactions to identify areas where compliance gaps, interpretation risks, or documentation weaknesses may arise. This assessment covers taxable income calculations, transaction classifications, related-party arrangements, Free Zone conditions, filing accuracy, and record-keeping practices.

By mapping risks across operational, financial, and strategic levels, we help businesses understand their overall tax risk profile and prioritize corrective actions. This proactive assessment significantly reduces exposure to penalties, reassessments, and disputes with the Federal Tax Authority.

Tax Governance Framework Design

Strong tax governance ensures accountability, consistency, and transparency in tax-related decision-making. Essence Accounting and Tax Consultancy LLC assists businesses in designing and implementing tax governance frameworks that clearly define roles, responsibilities, approval hierarchies, and reporting lines within the organization.

Our governance structures align tax compliance with senior management oversight, ensuring that tax matters are integrated into corporate governance and risk management processes. This framework supports informed decision-making, enhances regulatory credibility, and demonstrates a strong compliance culture during audits or authority reviews.

Development of Tax Policies and Internal Controls

Documented tax policies are critical evidence of compliance maturity. We support organizations in developing comprehensive tax policy frameworks covering corporate tax, VAT, excise tax, transfer pricing, and cross-border transactions. These policies define the organization’s tax position, risk appetite, compliance approach, and documentation standards in line with UAE tax laws and Federal Tax Authority guidance.

Alongside policy development, we help implement internal tax controls that ensure consistency, accuracy, and accountability in tax calculations, filings, and reporting. These controls reduce dependency on individuals, improve audit readiness, and strengthen overall tax compliance governance.

Ongoing Monitoring, Review, and Regulatory Alignment

Tax regulations in the UAE continue to evolve, requiring businesses to adapt their governance frameworks accordingly. Essence Accounting and Tax Consultancy LLC provides ongoing monitoring and periodic reviews to ensure that tax risk management systems remain aligned with legislative updates, FTA clarifications, and international tax developments.

We support management with regular compliance reviews, policy updates, and advisory on emerging tax risks, ensuring that governance frameworks remain effective, current, and defensible. This continuous oversight supports long-term compliance stability and protects businesses from unexpected regulatory exposure.

Supporting Audit Readiness and Authority Engagement

A well-structured tax risk management and governance framework significantly improves audit outcomes. Our services ensure that businesses are fully prepared to respond to Federal Tax Authority audits, information requests, and compliance reviews with confidence and clarity.

By maintaining documented policies, controlled processes, and clear governance structures, organizations demonstrate transparency and accountability, reducing the likelihood of disputes, penalties, or adverse audit findings.

Why Choose Essence Accounting and Tax Consultancy LLC

Essence Accounting and Tax Consultancy LLC combines technical tax expertise with practical governance solutions tailored to the UAE regulatory environment. We work closely with business owners, finance teams, and senior management to build tax frameworks that are compliant, scalable, and aligned with business objectives.

This service is ideal for organizations seeking tax risk management services in UAE, tax governance advisory Dubai, corporate tax policy framework consultants, VAT risk management support, and Federal Tax Authority compliance governance solutions.