Tax Residency Certificate or Tax Domicile Certificate is issued by the Ministry Of Finance (MoF). Corporate individuals and can apply for Tax Domicile Certificate in UAE to avoid double taxation. In order to ensure this there is an agreement signed by different countries, it is called DTAA (Double Taxation Avoidance Agreement). Once it is signed by two countries, it is mandatory to issue the Tax Domicile Certificate to the eligible applicant by the Tax Authority.
The validity of the Tax Domicile Certificate in UAE is one year from the date of issued. Corporates and individuals can use the certificate for one specific country at a time and they can have multiple certificates as such.
Only a resident can apply for the Tax Residency Certificate or Tax Domicile Certificate in UAE if he/she has stayed in the country (UAE) for a minimum period of 180 days.
Once the Tax Residency Certificate or Tax Domicile Certificate in UAE is applied, it will take 3-5 days to get the certificate.
All the companies which have registered and operated in the UAE for a minimum one year can apply for a tax residency certificate.
Once the Tax Residency Certificate or Tax Domicile Certificate in UAE is applied, it will take 3-7 days to get the certificate.
Tax Residency Certificate or Tax Domicile Certificate in UAE is an official document issued by the government of the resident country to prove that an individual or corporate entity is residing in the country. Banking authorities, financial institutions and other departments are considering Tax Residency Certificate or Tax Domicile Certificate as the proof of tax residency in the country of residence.
Tax is one of the major sources of income for government across the globe tax rules. Aa a result, financial institution, especially banks require Tax Residency Certificate or Tax Domicile Certificate of their customers. Moreover, tax authorities have sharpened their rules as to when tax treaties can be applied. Tax Residency Certificate or Tax Domicile Certificate is the ultimate proof to show you or your establishment that you are the tax resident in the country of residence.
In the UAE mainly there are three types of companies, that are Mainland companies, Free zone companies and Offshore companies (also called International Business Companies – IBC). Out of this three, Mainland companies and free zone companies can use the benefits of Tax Residency Certificate or Tax Domicile Certificate, but Offshore companies are not entitled to the tax treaty benefits and cannot receive such certificates. However, to get the benefit of tax residency, offshore companies can apply for a tax exemption certificate
Double Taxation Treaty is an agreement that is signed between countries to avoid tax during international trade activities. Many countries have entered this agreement to avoid tax for import-export, income tax, Value Added Tax etc. However, the Tax Residency Certificate or Tax Domicile Certificate can consider as double tax avoidance agreement. The first double taxation avoidance agreement was signed between the United Arab Emirates and France. Since then, the Emirates, including Dubai, have signed 92 double taxation treaties with countries across the world.
The list of double taxation avoidance agreements includes Albania, Algeria, Armenia, Austria, Azerbaijan, Andorra, Belarus, Benin, Belize, Bangladesh, Bermuda, Barbados, Bosnia and Herzegovina, Belgium, Mauritius, Canada, Bulgaria, China, the Czech Republic, Egypt, Estonia, Ethiopia, Cyprus, Finland, Fiji, Georgia, Gambia, New Guinea, Germany, Greece, Hong Kong, Italy, India, Ireland, Japan, Kazakhstan, Kyrgyzstan, Kenya, Indonesia, Lebanon, Luxembourg, Latvia, Liechtenstein, Lithuania, Malaysia, Macedonia, Malta, Mongolia, Montenegro, Morocco, Mauritius, Mauritania, Mozambique, Mexico, the Netherlands, New Zealand, Nigeria, Pakistan, Philippines, Poland, Portugal, Palestine, Panama, Romania, Russia, Seychelles, Singapore, Senegal, Switzerland, Spain, Serbia, Slovenia, Slovakia, Sri Lanka, South Korea, South Africa, Sudan, Syria, Tajikistan, Thailand, Turkmenistan, Tunisia, Turkey, New Zealand, Ukraine, Uzbekistan, Uruguay, Uganda, Venezuela, Vietnam, Yemen.
Investors in the UAE enjoy the best experience of business and access to the international market. The following points can be considered as the benefits of having a Tax Residency Certificate or Tax Domicile Certificate
Our experienced and qualified professionals can support and guide you in getting the Tax Residency Certificate or Tax Domicile Certificate without any hassle.