Alankit.ae | Issuance of Tax Residency Certificate

OVERVIEW

As of now, business activities in the UAE are supporting international trade links, yet it likewise gets convoluted once it gets caught in the tax regime. Thus, businesses are presently handling the issue of twofold tax assessment. To straighten out this issue, a Tax Residency Certificate in UAE comes into existence.

A Tax Residency Certificate in UAE sometimes called Tax Domicile Certificate (TDC) is issued by the Ministry of Finance (MOF), International Financial Relations and Organizations Department conferring eligibility to government entities, companies, and individuals to benefit from the treaties of double taxation avoidance of the UAE with its other global counterparts.

If a person resides in the UAE for at least 180 days he can apply for the UAE Residency Certificate. The non-residents cannot apply for this certificate.

Companies functioning in the UAE for at least the past year can apply for the certificate.

WHAT IS A TAX RESIDENCY CERTIFICATE, AND WHAT IS IT FOR?

Before going into details on Tax Residency Certificates (TRC), we essentially first need to define what it means.

A Tax Residency (Domicile) Certificate is a document issued by the UAE Ministry of Finance evidencing the applicant’s (individual/company) formal status as a UAE resident in respect to a particular Double Taxation Avoidance Agreement (“DTT”) between the UAE and specific foreign jurisdiction.

In a modern world, the place of profit is no longer limited to the country of business registration, or native country of a person, since the sources of profit can be anywhere around the world. At the same time, each country seeks to receive its income by taxing its residents. In order not to pay several fees for the same income, double taxation treaties were once concluded between the countries. A tax residency certificate is required to confirm the fact of receiving income in another country to the tax authority of your country, that is, you can use the double tax treaty in practice.

Surely, people want to minimise their deductions and, hence, often choose such countries for business registration that provide minimal tax burden. The UAE with its 0% income tax for individuals and legal entities is ideal for anyone in this regard. But in order not to pay taxes on profits earned in UAE, you must first apply for a UAE Tax Resident Certificate. The Ministry of Finances (MOF) of the United Arad Emirates deals with these issues here.

Before considering the issue of obtaining a tax residency (domicile) certificate, you must make sure that your country is on the list of those with which the UAE has signed a bilateral Double Taxation Agreement (DTT). You can find the full list of countries here. If your country is not on the list of those who have signed a Double Taxation Treaty, this document does not give you anything. You will still have to pay taxes on the income received in the UAE in your native country.

The procedural steps involved Issuance of Tax Residency Certificate/Tax Domicile Certificate by FTA in UAE are:

  • Creating an online account in the system of MOF.
  • Filling up Tax Residency Application Form.
  • Attaching necessary documents in digital formats such as PDF or JPEG and applying with fees.
  • Receiving email notification of successful verification of application and remaining payment advice.
  • Making payment.
  • Issuance of certificate and sending to the registered address by express courier services.

THE VALIDITY OF ISSUANCE OF TAX RESIDENCY CERTIFICATE / TAX DOMICILE CERTIFICATE BY FTA IN UAE

The Tax Residence Certificate by FTA (Federal Tax Authority) has a one-year validity period from the date of issue. The Tax Residency Certificate, also known as the Tax Domicile Certificate, can be used by corporations and individuals. Additional certificate applications can also be filed subjected to unique needs.

Tax Residency Certificates are restricted for offshore corporations; ergo, they would need to get a tax exemption certificate.

DOCUMENTS REQUIRED FOR ISSUANCE OF TAX RESIDENCY CERTIFICATE / TAX DOMICILE CERTIFICATE BY FTA FOR COMPANIES

To apply for Tax Domicile Certificates, the company must have exercised its activity in the UAE for at least one year.

Documents required for Companies to get an Issuance of Tax Residency Certificate / Tax Domicile Certificate by FTA in UAE are:

  • A copy of the trade license and partners' attachments.
  • A copy of MOA (Memorandum Of Association ).
  • A copy of the company’s owners/partners/directors’ passports, IDs, and permits of residence.
  • A certified copy of the audited financial accounts.
  • Validated Bank Statement for 6 months.
  • A certified copy of the Lease Agreement.
  • The establishment contract is certified by official authorities (if it is not a sole company).
  • The organisational structure of the company ( if it is not a sole company).

For Individuals

To apply for an Issuance of Tax Residency Certificate / Tax Domicile Certificate by FTA individuals must have been a resident in the UAE for at least 180 days. The certificate is not granted to non-residents.

The documents required for individual Issuance of Tax Residency Certificate / Tax Domicile Certificate by FTA in UAE are:

  • A copy of my Passport and Emirates ID.
  • Valid residence permit.
  • A copy of the company’s owners/partners/directors’ passports, IDs, and permits of residence.
  • Bank statement for 6 months.
  • Salary certificate / Income certificate.
  • A report from the General Directorate of Residency and Foreigners Affairs mentions the duration of the person’s stay in UAE (Minimum 180 days).
  • The establishment contract is certified by official authorities (if it is not a sole company).
  • Tax forms (if any) from the country where the certificate needs to be submitted.

BENEFITS OF ISSUANCE OF TAX RESIDENCY CERTIFICATE / TAX DOMICILE CERTIFICATE BY FTA IN UAE

Investors in Dubai can benefit significantly from their access to the international market after company formation in UAE. The benefits of being a Tax Resident in the UAE are many and include:

  • Avoidance of Double taxation.
  • Receiving tax incentives.
  • Receiving tax benefits for import and export.
  • Easing international business and strengthening cross-border business relationships.
  • Separate certificates permitted to Individuals and corporates.

BOTTOM LINE

Effective tax planning with a multidisciplinary approach supported by strong business knowledge, accounting and finance structures, and fundamental tax rules are a necessity to get the maximum benefits out of the Tax Residency Certificate in the UAE. Considering this fact, it is always prudent to outsource one of the best professional and experienced services in UAE for the same.

FAQs

What is the total time required to obtain a Tax Resident Certificate?

The certificate can be applied for a half year (6 months) after you become a UAE resident (acquire your residency visa). With respect to organisations or companies - the application can be made in a year (12 months). It takes around one to two months to get it from the date of all document applications.

Can I receive the certificate for the previous times I have been a resident in the UAE?

Yes, the possibility to acquire the TRC certificate retrospectively means casing the previous time; provided you have all the necessary documents required for the same.

What exactly does a Tax Residency Certificate confirm?

It authenticates your status as the tax resident of Dubai or other Emirates of the UAE from the standpoint of the UAE authorities.

Who can obtain the TRC?

Private individuals and local companies – free zone and the mainland.

Does it also use the advantages of double tax treaties of the UAE?

Yes, the domicile certificate is one of the most important documents you need to qualify for double tax treaties advantages under the jurisdiction of the UAE.

What is the immigration report, and when it is required?

The immigration report is the report issued to provide proof of your trips to the UAE. It is obtained from the UAE immigration authorities and is one of the vital documents required for the application for the TRC.

WHY ALANKIT?

Acquiring proficient tax advice and direction for your organisation's administration is as per the tax rules. A productive assessment used for tax gives an unprejudiced outline of the plan of action for the business model and individual factors.

For any further queries or information related to the company’s services, feel free to get in touch with us. Simply fill your query related to services in the form below mentioned and our dedicated executive team will be in touch with you shortly. (Within 24 hours)

  •  

Close
Privacy Policy

The Privacy Policy covers how the personal information collected from the clients who register for the services and use payment gateway services will be handled, as well as the treatment of the consumer information that we acquire in the course of our business. This Policy is specific to Alankit.ae and does not apply to any other websites or Internet services that are part of or to be part of the Alankit Network.

We at Alankit are committed to protect our customers’ personal information and/or sensitive personal data and strive to maintain the privacy of your personal information. Alankit only collects the necessary personally, identifiable information in order to respond to the requests received from the clients for our customized products and services. Personally identifiable information includes, but is not limited to, first and last name, physical address, e-mail address, phone number, and any other information that itself identifies or when tied to the above information, may identify you as a specific individual.

All credit/debit cards details and personally identifiable information will NOT be stored, sold, shared, rented or leased to any third parties. The User agrees that the debit/credit card details provided by him/ her must be correct and accurate and that the User shall not use a debit/ credit card, that is not lawfully owned by him/ her or the use of which is not authorized by the lawful owner thereof.

Alankit reserves the right to amend or modify this Privacy Policy at any time, as and when the need arises. We request you to visit our website www.alankit.ae periodically for contemporary information and changes. Modifications will be effective from the date they are posted on the website.

If you believe that the company has not adhered to this privacy statement, please contact us by email at info@alankit.com, and we will use commercially reasonable efforts to promptly determine and remedy the problem, if any.

Close
Terms & Conditions

Once the user has accepted the terms & conditions, he/she may be entitled to register and avail the services offered by the Company. The Payment Gateway service is provided to you in order to facilitate access to the services and pay the fee online.

We accept payments online using Visa and Master Card Credit/Debit Card in AED (or any other currency). Any dispute or claim arising out of or in connection with this website shall be governed and construed in accordance with the laws of UAE.

The Company will maintain the confidentiality of each transaction and will not collect or otherwise deal in commercially sensitive information, except to the extent necessary for the Services.

In no event will Alankit, be liable for any damages whatsoever arising out of the use, inability to use, or the results of use of this site, any websites linked to this site, or the materials or information contained at any or all such sites, whether based on warranty, contract, tort or any other legal theory and whether or not advised of the possibility of such damages.

Alankit reserves the right, at our sole discretion, to change, modify, add or remove portions of these Terms of Use, at any time without any prior written notice to you. It is Your responsibility to review these Terms of Use periodically for updates / changes. Your continued use of the Website following the posting of changes will mean that you accept and agree to the revisions.

Close
Refund Policy for Online Payment

In case the service facility is not delivered/provided as committed at the time of Payment acceptance, you may ask for a refund of the payment made. The request for refund is to be submitted along with the reasons, the same will be forwarded for review of the Management. The management will take an appropriate decision after looking into your request.

The person will not be entitled for any refund if the service request is already accepted and documentation is in process. Please note that there will be a nominal deduction of 10% on the payment made, payable towards the administration fee.

Cash refunds are not available. The refund will be processed automatically and will be credited back to the original credit/debit card or bank account from which the payment is made.

The Refund Policy will only be applicable for the online payments made, it will not include any other transactions.

All refund requests are to be submitted to alankitglobal@alankit.com. The request will be processed in 4-5 working days and the refund ( if applicable) will be made in 30 days time period.

Close
Forget Password
Close
PLEASE FILL YOUR DETAILS