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Tax Residency Certificate is also called the Tax Domicile Certificate and it is one of the legal document that is issued by the Ministry of Finance to the businesses or the taxable person that proves that the taxable person is the resident of the country and the business is officially operated and managed in the nation.
The United Arab Emirates have signed the treaty with 55 countries so as to avoid double taxation. The main objective of the tax residency certificate is to avoid double taxation. The treaties signed is basically a bilateral agreement to protect the interest of the foreign investors and the companies or the businesses who are coming from other taxable jurisdictions.
The tax residency certificate in UAE will only be issued to the businesses who are registered in the UAE and the individuals who have a valid residence visa. Any individual who is a resident for more than 180 days in the UAE is eligible to get a tax residency certificate. A company or business should be existent in the UAE for a minimum of three years to be eligible to get the tax residency certificate.
Offshore companies in the UAE cannot get the tax residency certificates as they are not listed in the tax treaties. They are only eligible to get the tax exemption certificate and get the tax exempt for them in the UAE.
The basic documents that are required to be submitted to get the tax residency certificate are as follows:
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FOR COMPANIES |
FOR INDIVIDUALS |
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Valid Trade License |
Copy of PP and visa |
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Valid Tenancy Contract |
6 months bank statements |
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Copy of PP copy and residence visa of the authorized signatory |
Certified tenancy contract with Ejari attestation |
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Copy of Emirates ID of the authorized signatory |
Salary Certificate |
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Certified six months bank statement |
Immigration report of residency |
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Audited financial statements |
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The process of getting the tax residency certificate in the UAE takes 2 weeks to approve the application and up to 2 weeks to get the tax residency certificate delivered.
The tax residency certificate that is issued to the individuals or the companies is valid for a year and after that the process needs to be repeated to obtain the tax residency certificate.