UAE is known as the Gateway to the Middle East region and the Arab world for businesses worldwide. Due to the favorable geographic location and the stable governance offered by the UAE, many companies look forward to establishing and growing industries in the Country. Many UAE city-states such as Dubai and Abu Dhabi are metropolitan cities and home to the global diaspora. Global connectivity with seaports, airports, and business-friendly policies have ensured businesses flourish in the Country. UAE tax residency certificate is one such document that is beneficial to entrepreneurs and international companies.
UAE Tax Residency Certificate
Tax Residency Certificate is legal paperwork issued by the relevant authority that helps a company utilize the tax benefits and further prevents them from paying double taxation in another jurisdiction. The tax residency certificate can help the applicant to avoid double taxation in their native countries. In the UAE, the residency certificate is issued by the Federal Tax Authority (FTA). The Certificate issued by the tax authority is valid for one year post, which has to be renewed.
Both companies and individuals can apply for the residency Certificate only when they have completed a minimum of 180 days in the UAE Emirates. The holder generally uses a tax residency certificate to completely utilize the advantages of the comprehensive double tax treaties between the countries. The certificate holder can take advantage of the prevailing double taxation avoidance agreements signed by the UAE, the resident Country with over 76 countries worldwide.
Any company operating in the UAE mainland, Freezone companies, and businesses with an operating track record of more than 36 months can apply for the residency certificate. An individual or Company is a resident of the UAE shall obtain UAE Tax Residency Certificate by filling out an application for the same, which shall contain the following particulars:
- Name of the Applicant
- Status of the applicant (individual, Company, firm, etc.)
- Nationality of the applicant
- The territory of company incorporation or registration
- Applicant’s Tax Identification Number
- Current Residential status for Tax
- Period for which the tax residency certificate is applicable
- Address of the applicant for the period for which the Certificate is applicable
The procedure followed to Apply for Tax Residency Certificate
The below procedure has to be followed to apply for the UAE tax residency certificate.
The applicant should create their account in Federal Tax Authority (FTA) online portal. The user is provided with a login password.
The applicant can log in to his account using the username and password created by the same. The user is further redirected to the Dashboard page.
The applicant can submit the tax residency certificate request by completing the application form and uploading the required documents in the required formats. The submitted papers will be scrutinized thoroughly against the required standards and confirmed on the registered email to the user. Upon completing the fee payment, the applicant will receive the Certificate through a courier.
Documents Required for Individuals to Apply for Tax Residency Certificate
The following are the documents required by the individual to apply for the Certificate through the Federal Tax Authority’s official portal:
- Copy of UAE Residence Visa
- Copy of Emirates ID
- A valid Passport and visa Copy
- A Certified copy of (residential) lease agreement or Tenancy Contract Copy with RERA attestation
- Latest Salary Certificate
- Company bank account statement for the previous six months
- General Directorate of Residency and Foreigners Affairs report confirming the number of days resident has stayed in UAE
- Tax Forms (if applicable) from the Country where the Certificate is to be submitted.
- Valid Immigration certificate that includes entry and exit report
Documents Required for Companies to Apply for Tax Residency Certificate
The following are the documents required by the Company to apply for the Certificate through the Federal Tax Authority’s official portal:
- An official letter of request from the Company.
- All the documents required during the formation of the Company
- Copy of the Memorandum of Association (MoA) and the trade license of the Company.
- The company organizational structure (if the Company is not a sole company).
- Passport copies of all company shareholders and managers, along with the relevant visa page and the IDs.
- Tax Forms (if any) from the Country where the residency certificate is to be submitted
- Audited yearly financial statements of the Company.
- Bank statements of the Company for the previous six months.
- Copy of the Tenancy Contract and also a copy of EJARI (Rent Agreement)
How Can We Help?
Jaxa Chartered Accountants, over the years, have helped many companies to understand and assist in applying for the UAE tax residency certificate. Please Contact Us for any assistance required to help you with the tax residency certificate. We’d be happy to help you!