A tax residency certificate is an official document issued by the UAE government that certifies an individual or company’s tax residency status in the country. It is important because it allows individuals and companies to take advantage of the UAE’s favorable tax regime and avoid double taxation. If you are interested in obtaining a tax residency certificate in Dubai, we can help you. Please get in touch with our accounting firm in Dubai for assistance.
| Quick Facts | |
|---|---|
| Certification | A tax residency certificate is an official UAE document confirming an individual’s or company’s tax residency status in the country. |
|
Issuing authority |
Federal Tax Authority (FTA) |
|
Purpose |
To avail of double taxation avoidance and benefits under Double Taxation Avoidance Agreements (DTAA) |
| Eligibility | Individuals and companies conducting business or residing in Dubai |
| Application process |
Online application through the FTA portal. We can also help you obtain the tax residency certificate in Dubai. |
| Documentation |
– Valid passport and Emirates ID for individuals; – Company documents for businesses (trade license, memorandum of association, etc.) |
| Proof of residency |
Utility bills or tenancy contracts demonstrating physical presence in Dubai. |
| Tax payer identification number |
Obtaining a Tax Registration Number (TRN) is a prerequisite for application for the tax residency certificate in Dubai. |
| Financial statements |
Ensure precise financial record-keeping and timely submission of tax returns. |
| Application fee |
– A fee of AED 500 applies to all tax registrants and commercial activities; – Non-tax registrant natural persons are subject to a fee of AED 1,000; – Non-tax registrant legal persons incur a fee of AED 1,750. |
| Processing time |
Typically, 2 weeks to approve and 2 weeks to deliver |
| Renewal period |
Annual |
| Double taxation agreements |
Dubai has 92 DTAA with various countries, providing relief from double taxation. |
| Compliance requirements |
Compliance with local tax regulations is necessary for maintaining tax residency in Dubai. |
| Assistance from tax advisors | Seek advice from our tax advisors in Dubai to ensure compliance and maximize benefits. |
Table of Contents
Ways to get Dubai tax residency
A tax residency certificate in Dubai, also called a domicile certificate, is an official document that verifies the legitimate tax standing of a business or an individual, affirming that they generate income within the country and contribute to the local tax revenues. Let’s address the ways of acquiring a tax residency or tax domicile certificate in the UAE. There are several straightforward yet successful methods to achieve a tax residency certificate in Dubai:
- Securing a visa by investing in real estate within the Emirate;
- Acquiring a visa through the registration of a local company;
- Gaining visa approval based on an employment contract.
If you are seeking assistance to get a tax certificate in Dubai using any of the above-mentioned methods, please consult us. Our accountants in Dubai can offer you detailed information as well as practical assistance in this matter.
Can non-residents of Dubai apply for a tax residency certificate?
Yes, non-residents can apply for a tax residency certificate in Dubai through the government’s online portal. However, the requirements and process may differ for non-residents compared to residents. Non-residents may need to provide additional documentation such as a passport copy and proof of income earned in Dubai. For acquiring Dubai tax residency, it is recommended to check with our accountants for specific requirements and procedures. Besides this, they can also apply online for you.
Why do I need a tax residency certificate in Dubai?
Overseas nationals may face the risk of being subject to taxation in foreign jurisdictions. This is why they require a Dubai tax residency certificate. To qualify for this certificate, individuals must demonstrate that they have spent a minimum of 183 days in Dubai during the most recent tax year. This certification allows individuals to avoid dual taxation on their income, typically in their country of origin. This is especially beneficial for those hailing from nations that lack a double tax treaty with the UAE. The Ministry of Finance issues the tax residency certificate, and its validity extends for one year. If you are planning to avoid paying double taxes, you will need a tax residency certificate in Dubai. If you have any questions about the procedure for acquiring a tax certificate in Dubai, please get in touch with our accountants. They can answer all your concerns effectively.
Tax certificates for companies in Dubai
Businesses seeking a tax residency certificate in Dubai are obliged to provide specific documentation alongside their application. For instance:
- Duplicates of the company’s trade license;
- Passport, visa, and Emirates ID of the company director and/or manager;
- Submission of a tenancy agreement or title deed, which must remain valid for a minimum of three months before the application date.
Further essential documents include proof of a physical office location and the most recent financial statement of the company, incorporating UAE bank statements from the preceding six months. If you need any expert help regarding documentation or acquiring a tax certificate in Dubai for your company, please get in touch with our accountants.
Tax on foreign banks and oil companies in Dubai
As aforementioned, companies must get a tax residency certificate in Dubai to avoid double taxation. Please find below the tax rates in Dubai:
- Dubai imposes a tax rate of 20% on the earnings of foreign banks conducting business within its borders;
- Oil companies face a substantial tax rate of 55%.
If you need more information about taxes, please contact our accountants. They can also help you if you need more information regarding obtaining a tax residency certificate in Dubai.
Please also note that Dubai has emerged as a global economic hub, attracting businesses and individuals from all corners of the world. Its strategic location, business-friendly environment, and tax advantages make it an attractive destination for investors, entrepreneurs, and expatriates alike. However, navigating the intricate web of tax regulations and optimizing financial strategies in Dubai can be a complex endeavor. This is where the need for tax advice in Dubai becomes paramount. From understanding the nuances of the tax system to ensuring compliance and exploring opportunities for tax optimization, our tax advisors play a pivotal role in helping individuals and businesses thrive in this dynamic and promising economic landscape.