TAX RESIDENCY CERTIFICATE IN DUBAI

TAXATION IN UAE

Businesses are no longer restricted to a single geographical territory in the age of globalization and are now spread across the globe. Because different countries contribute different amounts of total income, each country wishes to tax the global income of its citizens as well as profits earned on its land. Countries such as the UAE have entered into Double Tax Avoidance Agreements to reduce double taxation and ensure that business owners do not pay tax on the same income twice (DTAA). When two countries sign the DTAA, the tax authorities are required to produce a tax residence certificate, which assists investors and individual residents in claiming treaty benefits.

DOUBLE TAX AVOIDANCE AGREEMENT

The UAE's Double Taxation Treaty (DTT) or DTAA is a bilateral agreement that protects and promotes the interests of foreign investors and businesses investing in the UAE from other taxable jurisdictions. As a result of this treaty, any foreign company or national already paying taxes abroad for profits earned in their business can reduce any potential tax burden in the UAE. Investing in the UAE is tax-free, and the government does not impose any taxes on business owners who plan to set up shop in the UAE through DTT.

Individuals who have been fiscal residents in the UAE for more than 180 days and can provide the documents requested by the Federal Tax Authority (FTA) are also eligible to benefit from the treaty's benefits.

HOW TO GET A TAX RESIDENCY CERTIFICATE IN DUBAI

In the United Arab Emirates, a Tax Residency Certificate is also known as a "Tax Domicile Certificate." It is issued by the Federal Tax Authority (FTA), the UAE's governing body, to benefit from double taxation treaties signed between foreign jurisdictions and the UAE. Whether or not DTAAs apply, the FTA issues Commercial Activities Certificates to allow applicants to claim a refund of VAT paid in advance outside the UAE:

Eligibility for Tax Residence Certificate in Dubai

ELIGIBLE

1. A company operating in UAE mainland

2. Free zone company

3. An individual investor/business owner

4. An employed individual

NOT ELIGIBLE

1. Branch of a foreign company

2. Offshore company

3. A non-employed individual (with a spouse visa)

Requirements to Avail Tax Residence Certificate

FOR COMPANIES

1. Copy of a valid trade license copy

2. Copy of a valid lease contract or tenancy contract

3. Copy of the passport and residence visa of the authorized signatory (Manager/Director/Owner)

4. Copy of Emirates ID for the authorized signatory (Manager/Director/Owner)

5. Certified bank statement of an AED account for the last 6 months

6. Audited financial statement

INDIVIDUALS

1. A valid copy of passport and visa

2. Bank statement for the last 6 months

3. Certified tenancy contract with Ejari (RERA) attestation/title deed

4. Salary certificate

5. Immigration (entry and exit) report of residency

Validity

CORPORATE/INDIVIDUAL

A Tax Residence certificate is valid for one year.

Note: You can choose your dates based on your needs.

How long does it take to complete the process?

The approval of an application for a tax residency certificate takes approximately one week.