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UAE Tax Residency

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 UAE 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.

So far we have assisted over 400 companies.

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
  • 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
    submitted.
    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
    papers.

    • 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
      Emirates ID.
    • 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.

    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.