The UAE Federal Tax Authority (FTA) issues a tax residency certificate in UAE, also referred to as a tax domicile certificate, to businesses operating within the UAE. This certificate serves to establish tax residency and capitalize on the benefits of double taxation avoidance treaties. The Tax Residency Certificate is accessible to companies operating in the mainland or free zones, provided they have been operational within the UAE for a minimum of one year.
Advantages of Holding a UAE Tax Residency Certificate
- Safeguarded Automatic Tax Information Exchange
- Unlocking a Plethora of Business Opportunities
- Access to Global Markets upon Establishing a Dubai Business
- Separate UAE Tax Residency Certificates for Individuals and Corporations
- Double Tax Avoidance and Tax Benefits for UAE Residents
Objectives of Tax Residency Certificate
- Bolstering the Economic Progress of Dubai and the UAE
- Preventing Duplication of Tax Payments across Multiple Countries
- Streamlining International Trade and Investment Processes
- Facilitating Enhanced Economic Expansion for All Involved Parties
For the acquisition of tax-resident status in the United Arab Emirates, submission of the following documents is crucial:
- Verified Bank Statement
- Immigration Report, issued by Dubai’s immigration authority, detailing passport particulars, entry/exit dates and locations, and other relevant immigration data.
- Audit Reports
- Lease Agreement or Tenancy Contract
- Verified Bank Statement
- Passport, Emirates ID, Visa Page of Authorized Signatory & Residence Visa Copy, attainable through job contracts or onshore company establishment in the UAE.
- Memorandum of Association & Articles of Association of the Company
- Trade License
Upon successful submission and verification of the necessary documentation, the Federal Tax Authority can grant a Tax Residency Certificate (TRC).
