Tax Residency in UAE

The Ministry of Finance UAE is the government department that issues official documents such as the Tax Residency Dubai Certificate in UAE. This document is for the individual who is residing in the UAE or a company that exists in the region.

What is tax residency?

Basically, a tax residency is the country of your citizenship. If you have two countries residency then you should list the passport country. Otherwise you can be taxed by both countries. This is called a double tax and there is a solution that is known as DTAA (Double Tax Avoidance Agreement). DTAA is the agreement between two countries to issue a tax residence certificate and the certificate holder is able to claim treaty benefits.

If you interested in investing in the UAE and plan to setup a business in the UAE, there will be no tax, that is, the system that operates in the UAE is a tax-free regime. This means that you just need to pay tax in only one country where you have your tax residency.

Individuals can also get benefits from a treaty. For this, such person needs to provide specific documents to get this certificate. A request letter for tax residency certificate is one of the major requirements.

To be precise, here are the documents required for both categories

For Corporations

  • Valid Trade License Copy
  • Copy of a Tenancy contract
  • Copy of Passport
  • Copy of Residence visa
  • Copy of Emirates ID
  • AED Bank Account Statement for last 6 months
  • Audited Bank Statement

For an individual

  • Copy of Passport
  • Copy of Visa
  • 6 months’ Bank Statement
  • Tenancy contract certified by RERA attestation deed
  • A Salary Certificate
  • Immigration residency report

Validity

The validity of  a Tax Residency Certificate for both a Company and an individual are 1 year.

Timeframe

2-weeks is the expected approximate time for issuing of a Tax Residence certificate in the UAE.

What is the difference between a Tax Residency and a Tax Domicile Certificate?

A Tax Domicile Certificate is the other name of Tax Residency Certificate. This is the certificate to get benefits from the DTAA agreement executed between the UAE and other foreign jurisdictions. A tax certificate download option is available online.

Who can receive a Tax Residency Certificate?

  • Free Zone Company
  • A UAE Mainland Company
  • Offshore Company
  • An investor
  • Business Owner
  • Employed
  • Individual on spouse visa
  • A Foreign Company’s Branch

To manage your tax issues in the UAE, reach out to one of our consultants today.

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