In Dubai, the tax residency certificate is sometimes called the tax domicile certificate. It is an official document or certificate issued by the Ministry of Finance of the UAE. It is released to companies within the UAE for at least a year old or to an individual who has a residency in the UAE or permanently residing in the UAE for at least 180 days.
This official document or certificate can be used to fully use all the advantages of the extensive double tax treaties. It is also used to take advantage of the double taxation avoidance agreements which are signed by the UAE with over 76 countries all around the world. This document has a one-year validity from the date it was issued. This certificate cannot be applied to offshore companies or international business companies.
There are eligibility requirements for this document. The following are those who are eligible: an individual investor or business owner, a company that operates in the UAE mainland, free zone company, and an employed individual. Those who are not eligible are the following: an unemployed individual who owns a spouse visa, an offshore company, or a branch of a foreign company.
There are varying requirements for companies and individuals. For companies, the following documents are required: copy of the passport and residence visa of the authorized signatory, certified bank statement of AED account for six months, copy of valid trade license, copy of a valid lease contract or tenancy contract, copy of UAE ID for the authorized signatory, and audited financial statement.
For individuals, the following documents are required: valid copy of visa and passport, certified tenancy contract with Ejari (RERA) attestation/title deed, immigration (entry and exit) report of residency, salary certificate, and bank statement for the last six months.
A tax residency certificate will take two weeks to approve and two more weeks to deliver. Upon receipt of tax residency or domicile certificate within the UAE, it is important for you to be aware of the rules and regulations that are applicable within other countries. That’s why it is important for you to consult with the right professionals, when you receive the tax residency certificate. It may cause some confusion and its negative effects if you live part-time in the UAE and receive the tax residency certificate, yet you also spend a lot of time in another country. That other country may also recognize you as a tax resident of that particular country when its local laws are applied.
For more questions regarding the tax residency certificate, feel free to contact Home and Business Solutions Dubai.