Tax residency certification is an authorized document issued by the Ministry of Finance which approves the residence of a company or legal entity in UAE. It is also issued on the basis to avoid Double Taxation and shows the business products are registered for tax in the country. This however this not state that other countries would fully accept your tax residency certificate. This is due to the change in tax policies in other countries for example US tax residency certificate differs greatly from the one in UAE. Since the implementation of the VAT, it is mandatory for all business to obtain the Tax Residency Certificate. Tax Help will ensure you acquire tax residency certificate through the FTA’s online registration system without any hassles. Our tax agents provide tax competent structures that assist you to reap maximum financial benefits from your funds, regardless of your domicile.
Double Tax Avoidance Agreement (DTAA)
The Double Taxation Avoidance Agreement (DTAA) is a treaty signed between two or more countries to avoid being taxed twice for the same income. This is applicable in places where tax-payer resides in one country, however earns income from another. This agreement also conserves and supports the interests of foreign investors and companies coming from other taxable authorities, and capitalizing in UAE. Tax residency certificate is also issued to these UAE businesses alongside.
Investment in UAE is 100% tax free, and the government does not execute any taxes through DTAA on the business owners, planning to setup their business in UAE. Companies and individuals who are economic resident in UAE for more than 180 days and can provide the documents demanded by the ministry of Finance are eligible to use the advantages of the treaty.
Ways to Get Tax Residency Certificate
Tax Residency Certificate in UAE is also known as “Tax Domicile Certificate”. It is issued by the UAE Ministry of Finance the governing body, to take advantage of the double taxation avoidance agreements signed between the overseas jurisdictions and the UAE.
There are certain criteria to obtain Tax Residence Certificate in UAE:
Eligibility for Tax Residence Certificate
Eligible
- Company operating in UAE Mainland
- Free Zone Company
- An Individual Investor/Business Owner
- An employed individual
Not Eligible
- Offshore companies
- Non-employed individuals
Requirement to Avail Tax Residency Certificate
Companies / Corporates
- Trade License copy (valid for more than a year)
- Copy of a valid Lease Contract
- Copy of the Passport and Residence Visa of the authorized signatory (Manager/Director)
- Request Letter from the company
- Copy of Emirates ID for the authorized signatory(Manager/Director/Owner)
- Last 6 months Bank statement
- Audited Financial Statement
- AED 10106 + professional fees
Individual
- Valid copy of Passport and Visa
- Copy of Emirates ID card
- Request Letter from the applicant
- Certified Tenancy Contract
- Immigration report of residency
- Bank statement for the last 6 months
- Source of income/ Salary Certificate
- Certified Letter (NOC) from the existing Visa Sponsor
- AED 2,106 + professional fees
Validity of TAX Residency Certificate
The validity of a Tax Residence certificate is one year.
Note: Dates can be chosen based on your requirement