The tax domicile certificate or tax residency certificate is the responsibility of the Ministry of the Finance in the United Arab Emirates (UAE). Corporate individuals may apply for this certificate in the country for steering clear of any possibilities of incurring double taxation. For ensuring the same, the DTAA (Double Taxation Avoidance Agreement) has been signed by various countries.
Once two particular countries sign this agreement, it is compulsory for the tax domicile certificate to be issued by the tax authority to the applicant who is eligible. The validity of tax domicile certificates stands at 1 year in the UAE from the date of issue. Individuals and corporates may use the certificate for one country at a time and multiple certificates may be possessed by them as well.
Getting tax residency/tax domicile certificates in UAE
Residents can only apply for obtaining the tax domicile/tax residency certificate in the country in case they have stayed here for at least 180 days. Post application, the certificate may be obtained within 3-5 days on an average.
Here are the documents that are needed for this purpose:
- Emirates ID and Passport copy
- Valid permit for residence
- Certified copy of lease agreement (residential) or tenancy contract/agreement
- Salary or income certificate
- 6 months’ bank statement
- Report from General Directorate of Residency and Foreigners Affairs stating the duration of the individual’s stay in the country
- Tax forms (if required) from the country where submission of the certificate has to be done
Companies can apply if they have registered in the UAE and remained active for at least a year. The time period for getting the certificate is anywhere between 3-7 days. Here are the documents needed for this purpose:
- Trade license copy
- MOA (Memorandum of Association) copy
- Company partner/owner/director IDs, passports and residence permits
- 6 months’ bank statements
- Audit statement for last year
- Certified lease agreement copy
- Company organizational structure (if not sole company)
Benefits of obtaining this certificate
- Ultimate and final proof of tax residency of individual/establishment in the country of residence.
- Mainland and free zone companies may use tax residency/tax domicile certificates benefits.
- Helps people/companies bypass instances of double taxation.
- Displays corporate/individual status in UAE and helps in avoiding income taxes.
- Removes tax hurdles for exports and imports.
- Promotes global business by boosting inter-country relationships.
- Both corporates and individuals are eligible for obtaining this certificate.
- Corporates and individuals may have separate certificates obtained for different countries.
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