Tax Residency (Domicile) Certificate UAE

At present, commercial activities in the UAE are boosting international trade links, but it also gets complicated once it gets trapped in the tax regime. As a result, businesses are now tackling the problem of double taxation. To resolve this concern, a tax residency certificate in UAE comes into the equation.

HLB HAMT can help you obtain your Tax Residency Certificate (TRC) in the UAE in a timely manner. The strain of taxation can be avoided with the tax residence certificate in Dubai and the added benefit of a double taxation treaty to follow. A Tax Residency Certificate is available to any company operating on the mainland or in a free zone which has been operating in the country for at least a year.

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    Validity of Dubai Tax Residency Certificate

    The tax residence certificate in Dubai has a one-year validity period from the date of issue. The Tax Residency Certificate, also known as the TRC Dubai, can be used by corporations and individuals.  Additional certificate applications can also be filed depending on unique needs.

    Tax residency certificates are not available to offshore corporations; therefore, they should get a tax exemption certificate.

    Procedures for Tax Residency Certificate in UAE

    The applicant must complete an online process in order to obtain a tax residency certificate. The steps are as follows:

    • Make an account on the Federal Tax Authority’s (FTA) website.
    • Complete the form to apply for a UAE Tax Residence Certificate.
    • Using digital formats such as PDF or JPEG to upload required paperwork
    • Fees must be paid online once the application has been approved.
    • Certificates are issued and sent to the registered address through express courier.

    Required Documents for Tax Residency Certificate in UAE

    Predefined vital records must be presented in order to receive a tax residency certificate, and these documents differ for various parties. Let’s have a look at the needed documents:

    Tax Residency Certificate in UAE
    Individuals must provide the following documents to apply for a tax residency certificate in the UAE.

    • Salary Certificate
    • A confirmed bank statement from the previous six months.
    • A certified copy of the (residential) lease agreement or a copy of the tenancy contract
    • A copy of your passport, your UAE residence visa, and your Emirates ID are all required.
    • The General Directorate of Residency and Foreign Affairs (GDRFA) of the UAE has released a report tracking all entrances and exits.

    Tax Residency Certificate in UAE
    The following are the prerequisites for obtaining a tax residency certificate in the United Arab Emirates:

    • A copy of the company’s Certificate of Incorporation
    • The organisational chart of the corporation.
    • A copy of the directors’, shareholders’, or managers’ passports, as well as a copy of their valid UAE residency visa.
    • The company must have been in operation for at least one year and hold a valid UAE trade license (Mainland DED or Free Zone).
    • A copy of the Memorandum of Agreement for the firm (Memorandum of Association).
    • For the last six months, a UAE firm’s most recent certified audited financial accounts or bank statements, stamped by the bank.

    Tax Residency Certificate in UAE
    The company license, as well as the names of the partners and any other documents indicated earlier, should be included.

    Tax Residency Certificate in UAE
    The request should be accompanied by a copy of the marriage certificate, as well as copies of the marital couple’s passports and residency permits, as well as the partner’s wage certificate and work contract. Any additional documents pertaining to the husband that were previously supplied should be included.

    Duration of Time

    • The pre-approval procedure takes 4-5 days.
    • Once accepted, the UAE TAX Residency Certificate will be issued within 5-7 working days.

    Benefits of Tax Residency Certificate in Dubai

    It is a wonderful chance to embark on a business venture in the United Arab Emirates. One of the many aspects that attract businesses to the UAE is its competitive tax environment. Now that we’ve established why a tax residence certificate in UAE is required, let’s look at why it’s so important to obtain one:

    • Individual and corporate income taxes are both excluded.
    • It fosters international trade to a significant extent.
    • It validates a person’s or company’s legal recognition in the United Arab Emirates.
    • Avoid paying extra taxes throughout the import-export process.
    • It adds to the strengthening of bilateral business ties.
    • Being a UAE resident includes avoiding paying double taxes and taking advantage of tax breaks.
    • Multiple certifications are allowed for individuals and corporations.

    Why HLB HAMT for Tax Residency Certificate in UAE?

    Obtaining professional tax advice and guidance for your company’s governance is in accordance with the tax rules. An efficient tax strategy provides an impartial overview of the business model and individual factors.

    Any services relating to the Tax Residency Certificate or the Tax Domicile Certificate in the UAE are welcomed by HLB HAMT. Our knowledgeable staff will make your job easier by getting the relevant documents and certifications to finish the TRC procedure on time.

    Type of Company Setup in Dubai

    Frequently Asked Questions – Tax Residency (Domicile) Certificate

    1. What is a UAE Tax Domicile certificate?

      The Ministry of Finance issues a Tax Domicile Certificate in UAE, also known as tax residency certificate in UAE, to a company or an individual who has a UAE residence visa and has been permanently resident in the UAE for at least 180 days.

    2. What purpose does the Tax Residency Certificate in Dubai serve?

      The TRC in Dubai permits The Double Taxation Avoidance Agreements (DTAA) signed by the UAE with more than 76 countries throughout the world mean that foreign-sourced income is not liable to tax.

    3. Is it necessary for an individual to have a home address in Dubai?

      Yes, a Dubai residential address is required.

    4. What is the TRC’s validity?

      From the date of issue, the certificate is valid for one year.

    5. Is it possible to receive a certificate from a previous date?

      Yes, you may acquire one if you can show that you had a legitimate bank account, a home address and that you were in Dubai during that time.

    6. Is the Tax Domicile Certificate applicable to offshore companies in the UAE?

      No, the TRC Dubai does not apply to offshore companies or international corporations.

    7. Are bank statements from other countries acceptable?

      No, a personal account with a UAE bank is required and must be held for at least 6 months.

    8. How much time does it take to get a TRC?

      Pre-approval takes 4 to 5 working days, and the issuing of a tax residence certificate in Dubai takes 5 to 7 working days once permission is granted.

    9. What occurs if your Dubai tax residency certificate is misplaced or damaged?

      You must pay a specific sum of money to provide a replacement for a lost, damaged, or additional copy of the original certificate if it is lost, damaged, or an extra copy of the original certificate.

    10. What are the TRC’s specifications?

      Documents for a Tax Residency Certificate are necessary and vary depending on whether the application is for a firm or an individual.

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