Ingenious Corporate Services – Company Set-up in Dubai, United Arab Emirates
Tax Domicile Certificate / Tax Residency Certificate in UAE
Getting taxed more than once is no less than a nightmare. Thanks to the Tax Residency Certificate, that lets you live the dream of doing business abroad without being subject to the same taxes again in your home country. We can help if you need one!
Tax Residency Certificate (also called Tax Domicile Certificate) is a document issued by a country’s tax authorities that confirms an individual’s tax residency status. The certificate is typically used to verify that an individual is a resident of a specific country for tax purposes and is often required by foreign tax authorities or financial institutions to claim tax treaty benefits or to open bank accounts. It is also used to claim relief from double taxation when an individual is a tax resident of two or more countries.
Tax Residency Certificate in UAE
The United Arab Emirates (UAE) also has this option and grants a Tax Residency Certificate (TRC) to eligible government entities, companies, and individuals to enable them to take advantage of double taxation avoidance agreements on income to which the country is a signatory. The applicant must have been a resident of the UAE for at least 180 days in a year. Tax Residency Certificate typically contains information such as the individual’s name, address, tax identification number, and the dates of their tax residency in the country. The certificate is used to confirm that an individual is a tax resident of the UAE for a specific tax year and is required by individuals who are subject to tax in the UAE to claim relief from double taxation on their foreign income. Obtaining a Tax Residency Certificate typically involves submitting documentation such as a valid passport, Emirates ID, and proof of residence in the UAE.
Commercial Activities Certificate
A Commercial Activities Certificate, also known as a “VAT Refund Certificate,” is a document issued by the Federal Tax Authority (FTA) in the UAE that the holders to claim a refund for the VAT paid outside the UAE, whether Double Tax Avoidance Agreements (DTAA) are applicable or not. This certificate is typically issued to businesses that are registered for VAT in the UAE and are engaged in cross-border trade or import/export activities. In order to claim a refund, the holder must submit the certificate along with the necessary documentation to the FTA. Federal Tax Authority will soon activate a new and improved digital tax administration platform, EmaraTax, to make taxpayers’ lives easy.
UAE Tax Residency Certificate Application Process
The Ministry of Finance is the competent authority to issue Tax Residency Certificates in the UAE. The official document is granted to either Company inside UAE for at least 1 year of age or an Individual with a UAE residency visa / permanently living in the UAE for at least 6 months.
Foreign business owners in the UAE request TRC to make the most of the advantages offered by extensive double tax treaties and double taxation avoidance agreements signed by the UAE with over 76 countries in the world. The TRC certificate in the UAE comes with a renewal validity of one year. Furthermore, all types of foreign corporations operating in the UAE, whether from the Freezone or Mainland, can request this certificate to benefit from the double taxation agreement. However, the UAE Tax Domicile Certificate does not apply to offshore companies.
To acquire a Tax Residency Certificate in the UAE, you will be required to provide certain documents and information to the Federal Tax Authority. The specific requirements may vary depending on your situation and the type of entity you are applying for the TRC. In ordinary cases, the process to apply for a TRC in the UAE involves the following steps:
- Register on the Ministry of Finance (MoF) portal to apply for the TRC
- Complete the TRC application form online
- Once the application is approved, pay the application fee
Note: The process and requirements for getting a TRC may change. Therefore, it is advisable to check the FTA’s website for the most current information or consult one of the reputed business service providers in Dubai, UAE, such as Ingenious Corporate Services, for expert guidance.
Paperwork for the UAE Tax Residency Certificate Application
The list of supporting documents for a Tax Residency Certificate in the UAE varies depending on the type of application. In general, a TRC application in the UAE must be attached to the below-listed documents:
TRC Documentation For Companies
- A copy of the company trade license
- Tax forms (if any) from the country in which the certificate is to be submitted
- Establishment contract certified by official authorities (if it is not a sole company)
- Passport, Emirates ID, and Residence Visa copies of the shareholders & manager
- Certified copy of the latest audited financial Statement/Audit Report
- Certified copy of the commercial tenancy agreement
- Latest and validated 6-month company bank statement
TRC Documentation For Individuals
- Applicant’s passport, UAE residence visa, and Emirates ID copies
- A certified copy of the (residential) lease agreement
- Latest salary certificate
- Latest & validated 6-month bank statement.
- A report from the General Directorate of Residency & Foreigners Affairs (specifying the number of days the applicant has resided in the UAE).
- Tax forms (if any) from the country in which the certificate is to be submitted
What are the documents required for Mainland company formation in Dubai
Whether mainland or free zone, small or big, no business can be set up in Dubai without paperwork. Here is an estimated list of documents you need to arrange for your business setup in Dubai Mainland. Be informed that the authority (in this case DED) may ask for more documents if required.
• Completed trade licence application form
• Initial approval receipt and all the previously-submitted documents
• Duly attested MoA (applicable to all company types)
• Duly attested LSA (for civil establishments and
companies that are 100% owned by non-GCC nationals)
• Additional approvals from other government/
semi-government bodies concerned, as may be required
• NOC from the current sponsor (if the applicant is already in Dubai on a resident visa)
• Commercial tenancy contract or EJARI registration certificate
• Copy of NOC from partners
• Dubai Chamber of Commerce and Industry Registration
• Dubai Chamber of Commerce and Industry Registration
If the submitted documents and the licence application have no discrepancies, the licence can be issued just within a matter of 3-5 business days.
Usually, the UAE Tax Residency Certificate issuance process – from pre-approval processing to final approval – takes up to 2 weeks.
Get in touch with us for professional assistance in obtaining a tax residency certificate in Dubai, UAE.
What is the cost of setting up a mainland company in Dubai?
The exact answer to this question depends on a number of factors including the choices you make during the course. However, if you are interested in knowing the ballpark figure, the cost of obtaining a mainland licence in Dubai and setting up a full-fledged company can easily reach AED 50,000+. However, if you work with an experienced business setup advisor like us then it is possible to work around your budget.
To Be Precise…
Even if you are confident enough to start your business setup journey under your own steam, the first step to business setup in Dubai always starts with consulting a reputed business setup firm such as Ingenious Corporate Services.
Taking expert advice not only helps you make the right decisions every step of the way but also keeps you from unnecessary hassles and the spadework involved in completing the paperwork while saving you a fortune today and in the future. With our mainland business formation specialists in Dubai by your side, you don’t have to worry about a single thing regarding your new mainland business setup in any
part of the UAE – from deciding the most favourable economic activity and business location to
obtaining initial and special approvals to finally applying for the trade licence and visas.
Save your time and effort and do a zoom meeting with any of our business setup consultants in Dubai to know why we are your right business setup buddy!
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