Tax Residency Certificate in UAE - Legal Person

What is the definition of a Tax Residency Certificate in UAE?

The UAE Federal Tax Authority (FTA) issues a tax residence certificate in UAE, also known as a tax domicile certificate, to a business operating in the UAE in order to assert tax residence and take advantage of double taxation avoidance treaties. The Tax Residency Certificate is available to any company engaged on the mainland or in a free zone that has been operational in the UAE for at least a year.

The Advantages of Having a UAE Tax Residency Certificate

• Exchange of tax information is automatically protected
• Provides access to a plethora of business ideas
• When establishing a business in Dubai, you will have access to global markets
• Individuals and businesses can apply for separate UAE Tax Residency Certificates, which address income on an individual and corporate basis
• As a UAE resident, you can avoid double taxes and receive tax benefits

Goals of Tax Residency Certificate

• It encourages Dubai’s and the UAE’s overall economic growth
• It aids candidates to avoid paying taxes twice in two or more countries
• It streamlines the process of multinational commerce and investment
• For all involved parties, it facilitates increased economic growth

Submission of the following documents is essential in order to gain tax-resident status in the United Arab Emirates:

• Validated bank statement
• Immigration Report which will be issued by an immigration authority in Dubai, UAE, and will include the claimant’s passport number, entrance/exit dates and locations of entry or exit, as well as other pertinent immigration-related details.
• Audit Reports
• Lease Agreement or tenancy contract
• Validated bank statement
• Passport, Emirates ID, visa page of authorized signatory & Residence visa copy which can be attained through a particular job contract or by the establishment of an onshore firm in the UAE.
• Memorandum Of Association & Articles of Association of the company
• Trade License

The Federal Tax Authority can grant a Tax Residency Certificate, or TRC if all of the necessary paperwork has been submitted and verified.

Individuals can seek such a certificate on their own, but this can be a time-consuming and difficult process for the inexperienced. However, you can eliminate all of those worries and inconveniences by handing the job to the experts at HLB HAMT. We can assist you with obtaining your TRC as quickly as possible.

Type of Company Setup in Dubai

Frequently Asked Questions – Tax Residency Certificate – Legal Person

1. In the United Arab Emirates, who issues TRCs?

   In the UAE, the Federal Tax Authority (FTA) is in charge of this.

2. What is the legitimacy of the TRC?

   The certificate is valid for one year from the date of issue.

3. What is the definition of a tax resident?

   Anyone who works and resides in Dubai, United Arab Emirates, is considered a tax resident.

4. How long does it take to receive a TRC?

   Pre-approval needs 4 to 5 working days, and after authorization is given, the issue of a tax residency certificate in Dubai requires 5 to 7 working days.

5. What is the significance of a Tax Residency Certificate (TRC)?

   The Tax Residency Certificate (TRC) allows the government to assess an individual’s tax residency. A TRC is necessary to guarantee that no regulations have been breached and that no unexpected legal consequences have been imposed on the individual or company.