The United Arab Emirates is the fastest-developing business hub all around the globe. It converted itself from a desert city to a leading city in the world-class trade sector. The UAE has a diverse economy that attracts investors through its favorable tax policies. The government and the authorities are sincerely concerned about the fair implementation of taxes on individuals and companies. That’s the reason the UAE has 123 double taxation agreements which are in effect or being negotiated. In this agreement, the most beneficial relief for business owners is the Tax residency certificate UAE, which is formal proof of a tax resident.
The purpose behind the double taxation avoidance agreements (DTAA) is to ensure trade partners that a taxpayer will not have to pay taxes twice in two different countries. As a result, it promotes an open market for international trading and investment, while also protecting members from double taxation on the exchange of assets, capital, and services. In order to take advantage of the DTAA, business owners and companies placed in UAE must possess a Tax Residency Certificate (TRC) also known as, Tax Domicile Certificate (TDC).
What is a Tax Residency Certificate UAE Dubai?
A tax residency certificate is an official document issued by the Ministry of Finance (MoF) that allows legal entities operating in the UAE to establish tax residency and to take advantage of the double tax avoidance agreements. You can get detailed guidelines from this page and this will help you to understand Excise Tax Consultancy Services in UAE.
Eligibility Criteria of TRC:
The tax residency certificate is open to any business operating in the free zones and on the mainland for at least a year. For offshore companies, the Tax Residency Certificate is ineligible because they are not listed in the Double Taxation Avoidance Agreements. Instead, they receive a tax exemption certificate. The Tax Residency Certificate eligibility is far different for an individual taxpayer and a company:
A natural person can apply for a tax domicile certificate after living in the UAE for at least 180 days and wish to obtain tax residency there. Also, they gain additional benefits if their native countries do not have a double taxation agreement with the UAE. Furthermore, an annual lease agreement officially attested by the competent authorities, such as municipalities in other Emirates, EJARI in Dubai, and free zone authorities that should be attached to the application.
Legal Person is eligible to apply for tax residency certificate UAE if he has been established company for at least one year. An authorized audit firm must audit or prepare financial statements and attach them to the application with other relevant documents. Applicants must attach a stamped audited financial report covering the year for which a certificate is being requested. In order to obtain a certificate for the current year, the audit report must cover the previous year.
Official Documents Requirements for Tax Domicile Certificate Dubai
An individual must meet different
