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.
Step-1
The applicant should create their account in Federal Tax Authority (FTA) online portal. The user is provided with a login password.
Step-2
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.
Step-3
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.
