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Tax Residency Certificate in the UAE is issued by the Ministry of Finance, UAE. Tax Residency Certificate or the Tax Domicile Certificate is issued to the individuals or the corporate entities that allow them to avoid double taxation. An individual who has a resident visa in the UAE but is also a resident in any other country, he may get himself the Tax Residency Certificate that will make him a tax resident in the UAE and thus gives him the benefit of not paying taxes in the home country.
The validity of the Tax Residency Certificate is for one year and a new certificate can be issued on the expiry of the previous one. To be a resident in the UAE, the resident needs to have a valid UAE residence visa and needs to maintain his residency status by entering UAE once in a half year.
The United Arab Emirates has signed the Double Taxation Avoidance Treaty with 55 countries around the world so that the residents and the businesses need not pay double taxes for the income earned in one country. Under this treaty, the Ministry of Finance, UAE issues the Tax Residency Certificate to the individuals as well as the corporate.
The Tax Residency Certificate is only applicable to the UAE onshore companies. The offshore companies in the UAE cannot avail of the Tax Residency Certificate but are eligible for other certificates like the Tax Exemption Certificate.
In order to get the Tax Residency Certificate, certain documents need to be submitted with the Ministry of Finance online portal along with the payment of the fees.
The following documents need to be submitted by the businesses or corporate entities for getting the Tax Residency Certificate:
1. Trade License Copy
2. Memorandum of Association or Articles of Association
3. Copy of the owner/partners’ Passport
4. Copy of the owner/partners’ ID
5. Copy of the owner/partners’ residence visa
6. Bank Statement for the past 6 months
7. Approved Audit report
8. Copy of tenancy contract
The following documents need to be submitted by the individuals for obtaining the Tax Residency Certificate:
1. Copy of the Passport
2. Copy of the residential visa
3. Copy of the residential lease agreement
4. Salary Certificate
5. Bank Statement for the past 6 months
6. A report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has stayed in the UAE
The fees for obtaining the Tax Residency Certificate have to be paid online via the Ministry of Finance portal by using eDirham. The fees to be paid via eDirham for Tax Residency Certificate amounts to –
AED 10,000 along with AED 3 charges for corporate entities
And
AED 2,000 along with AED 3 charges for individuals
ARC Associates – Auditors and Consultants in UAE will be happy to help you obtain your Tax Residency Certificate in UAE so that you can avoid the double taxation.
For a no-obligation initial consultation, please contact:
Mr. Reyees. K.P | Director
ARC Associates
Tel: +971 4 4431604
PO BOX 390831
Mob: 055 4874391
B2B Tower, Office 1213
Business Bay
Dubai, UAE
Email: info@arcauditing.ae