Obtainment of Tax Residence Certificate
RAVAD ZAKHR EDIN
Senior Business Consultant
A Tax Residence Certificate is the primary evidence that your UAE company is liable to pay taxes in the country, and registered with the government authorities in this capacity. This certificate would be a key attachment to submit along with your application for benefits under a Double Taxation Agreement (DTA), or sometimes it might be requested by banks, both Emirati and overseas, as a part of their Compliance requirements. Individuals resident in the UAE can also apply for a Certificate confirming their residence.
Being a local-based advisory firm, we are thoroughly familiar with the regulations and practice of the Emirati tax authorities, and will make sure your company obtains a Tax Residence Certificate swiftly, smoothly, and with all additional authentications that may be required to successfully use it in the way you intend.
GET A TAX RESIDENCE CERTIFICATE FOR A COMPANY
All Tax Residence Certificates in the UAE are issued by the Federal Tax Authority, FTA. The application procedure is remote and streamlined, via the Authority’s web portal. However, every application must be accompanied by a number of documents supporting the applicant’s claim of being a UAE-based and UAE-operated, thus liable to taxation in the UAE, business. For a company, these documents are:
- A copy of your company’s trade license, i.e. the basic license which give it the right to carry out its principal activities in the UAE;
- Authorized Signatory’s passport and Emirates ID copies. Normally, a company’s director is expected to act as its Authorized Signatory, but a special Powers of Attorney may be issued to another person to act in this role;
- A copy of the Articles of Association and Memorandum of Association of your company;
- Audited Finacial Statements for the year in which you want your company to be confirmed as a UAE tax resident;
- A bank statement of your company’s account;
- A certified copy of the tenancy contract for your company’s office premises in the UAE.
To apply for a Tax Residence Certificate in the UAE, a company must have been operating in the country for at least a year. Once the certificate is issued, it will be valid for a year from the date of execution.
GET A TAX RESIDENCE CERTIFICATE FOR AN INDIVIDUAL
If you permanently reside in the UAE under a Resident Visa, you too can apply for a Tax Residence Certificate to confirm your status. Just like companies, individuals are to submit their applications to the FTA, and must file a set of documents along with them to prove their residence in the UAE. For a natural person, these documents are:
- A copy of your passport;
- A copy of your Emirates ID;
- A copy of your Residence Visa;
- A copy of any document comprehensively proving your main source of income, like an employment agreement or a corporate resolution to pay you dividends;
- A bank statement for your personal account;
- Immigration Report on Residency confirming that you have been staying in the UAE for more than 185 days within the year for which you need to obtain the Certificate.
A Certificate of Tax Residence issued to an individual is valid for one year.
MAKE SURE YOUR CERTIFICATE IS ACCEPTED
It is worth noting that, should you need to submit a Tax Residence Certificate for your UAE company to any party overseas – which is always the case when you need it to apply for benefits under a DTA – it has to be legalized specifically for the country of destination. To help you save your time and avoid unnecessary administrative complexities, we will be able to offer you a turnkey package of getting a Tax Residence Certificate and having it legalized for the country of your choice.
You may find an up-to-date list of all countries which have DTAs with the UAE here: https://eservices.mof.gov.ae/Agreement/?id=1
PLAN YOUR TAXES IN THE UAE AHEAD
To make sure you enjoy a comfortable regime of taxation in the UAE and reap all benefits you expect from a DTA, it is crucially important to have full and up-to-date knowledge of the UAE tax regulations. Having access to hands-on administrative and competent legal support is another important factor of running a smooth and successful business in the country. Our Tax Benefit International team will assist you with planning your taxes in the UAE in a well-informed and comprehensive manner, and with choosing and setting up a corporate structure most conductive to your aims and goals. If you are an owner of a business, we would be able to take on the administration of your company, its bookkeeping, and help you with getting registered for VAT or liaising with government agencies. If you are an individual planning to move to the UAE, we will provide you with visa support and real estate registration services. Both for businesses and individuals, we can find a reliable local bank to open an account with, and provide assistance with legalization of your documents for the UAE or other countries.