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What Should A Person In Business Know About Tax Residence Certificate In UAE?

Tax Residency Certificate:

Overview:

A tax residency certificate is what a country gives to the business owners in its territory when contracts are signed with various countries. It is recognized as a specialized document that allows the residents to take benefit of the Double Taxation Treaty (DTT). The residents of UAE will have the benefits that come with the implementation of the UAE’s Double Taxation Treaty. It exists to protect and endorse the businessmen, entrepreneurs, organizations, investors’ interests as they come from other jurisdictions or countries.

All individuals and coastal and free zone companies are entitled to claim the Tax Residency Certificate as long as specific conditions are fulfilled by them. However, the Ministry of Finance of UAE does not admit the offshore companies to have the Tax Residency Certificate as they are not supposed to be residents of the country.

Requirements necessary for the Tax Residency Certificate:

Listed below are the conditions that are necessary to be met by them to obtain the Tax Residency Certificate:

  • A valid passport and visa copies issued before 180 days of expiration
  • Emirates ID card copy
  • Six-month UAE bank statement that must be stamped by the bank
  • Actual proof of income in the UAE e.g., salary certificate, employment agreement, etc.
  • Immigration report which shows the recorded entries coming in and going out of the UAE.
  • Title deed or tenancy agreement (certified copy), it should be valid for at least three months just before the application.
  • Payment to do for the application fees of AED 2,000 + AED 3 via the e-Dirham card.

Conditions to apply for a Tax Residency Certificate:

 Below is the list of the terms that companies are required to fulfill:

  • A Copy of the company’s valid trade license
  • Tenancy agreement or title deed certified copy vat registration
  • Physical office space, and not a Flexi desk
  • Valid passport
  • A Copy of visa and Emirates ID of the company Director
  • A latest financial statement that is certifiably audited or the company’s UAE bank statements for the last six months
  • Application fees of about AED 10,000 + AED 10 should be paid by the applicant via e-Dirham Card.

Steps to Online Apply for the UAE Tax Residency Certificate:

  1. When you have checked and verified that you meet the requirements that are needed to be fulfilled to ensure that you can indeed obtain a Tax Residency Certificate, you can go ahead and visit the Ministry of Finance’s portal.
  2. It needs to be filled precisely with the correct information about you or your company.
  3. Along with the application, the website might ask for additional documents to support your use.
  4. Payment will not be made on the same day that you pass your request for Tax Residency Certificate.
  5. The individual who has applied for the tax domicile certificate can collect it at the Ministry of Finance.
  6. In the same way, it can also be sent by the Ministry through a courier that the applicant has given to the authority.
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