A UAE Tax Residence Certificate is an official document issued by the Federal Tax Authority (FTA) in the UAE. It serves as proof of tax residence in the country and is valid for one year, requiring renewal upon expiration.
The objective of the UAE Tax Residence Certificate is to enable individuals and companies operating in the UAE to benefit from Avoidance of Double Taxation Agreements (DTAs). By providing the certificate, individuals and companies can establish their tax residency in the UAE and potentially avoid being taxed in multiple countries. It also facilitates smoother cross-border trade and investments.
Both individuals and legal entities are eligible to apply for and obtain a UAE Tax Residence Certificate, as long as they meet the applicable requirements.
For individuals, the required documents include -:
- a copy of their passport,
- UAE residence permit (visa),
- Emirates ID,
- proof of residence (such as a lease agreement or title deed),
- evidence of income (such as a salary certificate or trade license),
- a bank statement from a local UAE bank,
- and a report specifying the number of days the individual has resided in the UAE.
For legal entities, the necessary documents include-:
- a valid copy of the trade license,
- establishment contract,
- passports and
- Emirates IDs of owners/directors/shareholders,
- proof of a physical office,
- audited financial accounts,
- a bank statement from a local UAE bank,
- and a tax form from the country where the certificate is to be submitted.
It’s important to note that UAE offshore companies are not eligible to apply for a Tax Residence Certificate as they are considered non-resident entities for taxation purposes.
The procedure for obtaining a UAE Tax Residence Certificate involves
- creating an account with the FTA,
- completing the application form,
- and submitting it along with the required documents for review and approval.
Alternatively, individuals and companies can seek assistance from a service provider to handle the application process on their behalf, which can save time and effort.
