Business entities face the double taxation issue during the import-export procedure. The thought of solving this task gave rise to a tax residence certificate, also known as a tax domicile certificate. This certificate is called a residence certificate, as it acts as proof of residence. It is beneficial for both individuals and business organizations to obtain this certificate. For business purposes, the UAE Government has started issuing this certificate to take advantage of the Double Tax Treaty (DTT) and convert the threat into a business opportunity. Before proceeding with the procedures, and eligibility criteria, first, let’s understand what a double tax treaty means.
Double Tax Treaty (DTT)
A double tax treaty is an agreement signed between two countries to avoid the tax they must pay during the import-export process while carrying out business activities. Many countries worldwide have entered into this agreement with their business countries to prevent a range of taxes like import-export, income, inheritance, value-added, etc. So, we can consider the domicile or tax residence certificate as a double tax avoidance agreement (DTAA).
Minimum Cost to Obtain a Tax Residency Certificate (TRC) in UAE
- For Legal persons - AED 568 to AED 1842.
- For Individuals - AED 1077.50.
Note: Professional fee for assistance will be additional.
Who Can Obtain a Tax Residency Certificate in UAE?
As we have seen, a tax residency certificate is issued to gain an advantage of double taxation. To obtain the certificate, specific criteria need to be fulfilled by both individuals and corporates. Let’s see who can obtain a domicile certificate:
- Any Dubai mainland company
- Any free zone companies
- An employed individual
- Corporates with a good track record of more than 36 months
(Icons for all, keep 2 in a line)
Documents Required for Obtaining Tax Residency Certificate in Dubai
To receive a tax residency certificate, certain essential documents must be presented, which differ for individuals and corporates. Let’s have a look at the documents required:
For Individuals
- A valid passport and visa
- Bank statement for last 6 months
- Certified tenancy contract with RERA attestation
- Salary Certificate
- Immigration certificate that includes entry and exit report
Why Outsource with JAXA For TAX Residency Certificate?
JAXA is a business consultancy firm in Dubai that deals with multiple phases of company accounting and taxation services worldwide. Key business activities are key to understanding businesses, framing the accounting and taxation structure, and delivering services on time.
We have numerous satisfied clients across the globe with a wide range of businesses. Our team of experts will help you achieve the domicile certificate per your business needs. To get your domicile certificate today, do contact us. We would be happy to assist.
