The Tax Residency Certificate is issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income signed by the UAE.
Tax Residency Certificate in UAE
Ministry of Finance provides the Tax Residency Certificate in UAE. This certificate brings the advances of the agreement sanctioned for avoiding double taxation on income from business functioning across countries.
The Tax Residency Certificate is issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income signed by the UAE. The treaty defines rules to avoid double taxation.
Double Tax Avoidance Agreement
Today, with globalisation, the incorporation of businesses in multiple nations is prevalent. As a result of which total income from different countries is generated. Each country wanted to extract the tax on global revenue as well as a separate tax on profits made on the federal land.
For prevention on paying double taxes by business owners for the same income, many countries including UAE have signed Double Tax Avoidance Agreement (DTAA). It is compulsory for tax authorities of countries which have signed the DTAA, commonly known as Double Tax Treaty (DTT), to maintain Tax Residency Certificate. With the DTT in function, the taxpayer cannot be subject to tax on the same income (or capital) in more than one jurisdiction.
How to obtain a Tax Residency Certificate in UAE?
UAE has signed the Double Tax Avoidance Agreement with around 87 countries. Ministry of Finance provides the Tax Residency Certificate in UAE, also known as the Tax Domicile Certificate. For obtaining a Tax Residency Certificate in Dubai, UAE, there are few criteria to be fulfilled. The process of acquiring the Tax Residency Certificate is approximately two weeks. Also, the validity of the Tax Residency Certificate is one year.
Eligibility for Tax Residency Certificate in Dubai
- A company in Dubai Mainland or Dubai Free zones; an offshore company is not eligible
- An employed individual or a business owner/investor; a non-employed individual or dependent cannot claim TRC
Requirements to Get the Tax Residence Certificate
For Companies
- Copy of a valid trade license copy
- Copy of a valid lease contract or tenancy contract
- Copy of the passport and residence visa of the authorised signatory (Manager/Director/Owner)
- Copy of Emirates ID for the authorised signatory (Manager/Director/Owner)
- Certified bank statement of an AED account for the last six months
- Audited financial statement
For Individuals
- Copy of passport and visa
- Bank statement for the previous 6 months
- Certified tenancy contract with Ejari (RERA) attestation/title deed
- Salary certificate
- Immigration (entry and exit) report of residency
Why Business Setup Worldwide?
Business Setup Worldwide has a background of decade-plus experience in offering professional tax planning and business set up services for international clients. Our 360-degree business setup solutions help entrepreneurs and firms in starting a business in Dubai through company registration, incorporation and legal consulting services and others. Few of the many ways in which we can provide our analysis and consultancy for your business:
- Suggesting the right investment structure that adds value to your business
- Putting an apt tax structure for your company/business in any part of the UAE
- Advising right jurisdiction and double taxation agreements to optimise your taxes and reduce withholding taxes on income
- Meet all regulatory tax requirements
For any help regarding tax residency certificate or any business set up solutions, feel free to contact us. We'll be happy to assist you.