What are the advantages of getting tax a residency certificate in the UAE? In this article, we will detail who and how can apply for tax residency and all the required steps.
WHY THE UAE?
The UAE is strategically located at the crossroads of Europe, Asia, and Africa, making it
easy to reach the world’s fastest expanding emerging markets. The UAE swiftly became
one of the most competitive corporate hubs in the world due to its strategic position,
sophisticated infrastructure, and exceptional financial environment.
For decades, the country’s wealth was not only based on oil, as is commonly supposed.
For example, in Dubai, income from oil and oil-related businesses accounts for less than
10% of GDP.
Dubai offers great flight links to virtually every country on the planet.
Companies in the UAE pay no corporation taxes and no withholding taxes. If a UAE
company does local business, 5% VAT is levied on most goods and services, with an
additional tax levied on specified product groups such as cigarettes, alcoholic beverages,
and sugared beverages.
Individuals who are fiscal residents of the UAE benefit from zero percent income tax,
zero percent wealth tax, and zero percent dividend tax. There are no capital limitations
in the UAE.
In the UAE, companies can be formed as Onshore Companies (also known as Mainland
Companies), Freezone Companies, or Offshore Companies. Please keep in mind that
offshore corporations are not eligible for residence visas (also known as investor visas)
and so are not eligible for fiscal residence.
There are three distinct eligibility conditions for residence visas and thus fiscalresidency:
- Forming a Freezone corporation, or
- Forming an onshore firm, or
- Real estate investment of more than AED 1 million (about $270,000)
Some of its advantages include:
- 0% income, corporate, and wealth taxation;
- 100% foreign ownership;
- 100% repatriation of profits and capital;
- 81 double taxation treaties
Gurcan Partners is a Foreign Economic Relations Board, AmCham and Association of German Chambers of Industry and Commerce member international law and consultancy firm.
CERTIFICATION OF PERSONAL TAXES
Taxation can be avoided with a tax resident certificate in Dubai and the added benefit of
a future double taxation treaty. A Tax Residency Certificate (TRC) is available to any
company that has been operating in the country for at least a year on the mainland or in
a free zone. The applicant must stay in the UAE for 183 days in order to get a Tax
Certificate. Generally, tax certificates are given within five working days.
- Dubai Tax Residency Certificate Validity
The tax residence certificate in Dubai is valid for one year from the date of issuing.
Corporations and individuals can use the Tax Residency Certificate, often known as the
TRC Dubai. Depending on the circumstances, further certificate applications may be
Offshore corporations cannot obtain tax residence certificates; thus, they must obtain a
tax exemption certificate.
- for Individuals
To apply for a tax residency certificate in the UAE, individuals must supply the following
- Certificate of Salary (In case the Applicant is an employee)
- Copy of the Company’s License (In case the applicant owns a Company in UAE
wherein the name of the applicant appears)
- A bank statement from the past six months has been confirmed.
- A certified copy of the (residential) lease agreement or tenancy contract
- You must bring a copy of your passport, your UAE residency visa, and your
- The UAE’s General Directorate of Residency and Foreign Affairs (GDRFA) has
produced a report that tracks all entry and exit points.
HOW DO I GET A RESIDENCE IN THE UAE?
- Incorporation of a Free Zone firm
- Incorporation of an Onshore company or,
- Or investment in real estate (worth more than AED 750,000)
The final proof of residency is the Tax Residency Certificate. It is a document issued by
the Ministry of Finance verifying that an entity or individual holds the status of tax
resident in the UAE and is eligible to use the UAE-specific Double Taxation Agreements.
So far we have assisted over 400 companies. Check out our experiences.
TAX CERTIFICATION FOR COMPANIES
- Information for Investors
The license for the company, as well as the names of the partners and any other
documents mentioned previously, should be provided.
WHAT WE CAN DO TO HELP
We have built a complete UAE Residency package that is unique to the region based on
our years of experience. Our bespoke approach allows us to build solutions to your
specific requirements, and it includes everything we know you’ll need to achieve and
prove full UAE tax residency.
For additional information or to schedule a private consultation, please contact us.
Please contact us:
or Call Us
+ 420 2 347 17 540 (English)
All rights reserved. All rights of UAE TAX RESIDENCY article belong to Gurcan Partners. The author has no responsibilities for the information in this article. This article is prepared just to inform.
Simge Ayse Pala LLBs
Gurcan Partners Dubai
+971 800 0120060 (Inside UAE calls)
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