The United Arab Emirates business industry has several advantages including tax facilities. The Tax Residency Certificate in UAE helps entrepreneurs and foreign investors to avoid tax-paying procedures if they are planning to become permanent residents.
This permit has great value if you legally acquire it and the process of applying it will be explained. The first thing you need to understand the core features of this certificate and what are the terms to follow to get it.
What is a tax residency certificate in UAE?
The official document issued by the Ministry of Finance to any individual or company helps them to avoid double taxation. The document is also known as tax domicile certificate UAE and in the year 2020, it was decided that Federal Tax Authority (FTA) will make on government authentic portal.
Those individual freshers or business owners who want to avail this opportunity must be living in that country that agreed with the UAE government. There are more than 90 countries that made a double taxation avoidance agreement with UAE and about 35 are on the pending list.
The tax certificate UAE is highly compulsory for the trading enterprises that working in Dubai or Abu Dhabi for more than a year. The individual immigrant who is searching for establishing a business start-up should apply for this permit.
The other major reasons for getting this certificate are explained below:
Why you need Tax Residency Certificate in UAE
Here are some factors which support the importance of a tax domicile certificate for corporates who want to utilize maximum benefits through UAE commercial facilities.
- A huge network of companies including have already made agreements with the UAE for a tax permit.
- This certificate blocks any income or corporate tax duties.
- The best source to do any legal business activity within UAE.
- Helps you to expand your business within Gulf states and promotes UAE global business channels.
Eligibility Criteria for Tax Residency Certificate in UAE
The tax domicile certificate UAE has some restrictions but if any company or an individual follows them with proper guidance then governmental authorities will send the permit.
The eligibility criteria are:
- Any company must be doing business activities for at least one year within UAE territories.
- The individual or all the company owners must be living in UAE for more than 180 days.
- The non-resident individuals or business partners do not have the authority to apply for a tax certificate UAE.
- Any off-shore company’s branch is not eligible to apply for the tax permit.
- You must have a valid Emirates Identity card.
- You must have a registered company or personal email ID and made an account on the FTA portal.
- The Ministry of Finance must approve your documents before sending them to the governmental website.
- Any individual who is unemployed and their parents are earning a salary within UAE are not eligible to apply for the certificate.
Documents requirements for tax residency certificate in UAE
The documents you are going to submit must be authentic and attested from the UAE governmental bureaus. Those individuals or business owners who already received the federal tax authority tax domicile certificate advise to hire a professional business consultant to assemble your documents. The individual or company document instructions will be slightly different but the process of submitting will be the same.
Documents for Individual
- The passport copies of your country.
- Income certificate copies.
- Valid residence card and UAE ID evidence.
- Resident certificate issued by the local landowners.
- Attested bank statements for more than 6-7 months.
- The tax papers of that specific country where the certificate will be delivered.
- General Directory of Residency and Foreign Affairs (GDRFA) approved and issued a report of entry or exit.
The best business consultancy agency in UAE, Dubai can guide you about collecting all these documents within days.
The attesting and authentic signatures from governmental sectors are also necessary which these consulting firms can get for individuals who feel difficulty performing these actions.
Documents for Company
- A trade license for any business activity in UAE is required to submit.
- All business partners’ legal business documents.
- Passport copies of the company owner, shareholders, and employees.
- Certified enterprise contract of your company.
- UAE Identity card photocopies of all company members.
- Company’s financial paperwork.
- Resident documents copies of owner, directors, and partners.
- Approved bank statements of your transactions for the last 6 months.
- Company’s business model and employee percentage details.
- Verified Tenancy agreement.
Keep in mind that company documents must be attested and signed by the UAE Ministry of finance before sending them to FTA.
How to apply for Tax Residency Certificate in UAE?
To apply on the portal of FTA you need to follow simple basic steps.
- Visit the official website.
- Create an account and carefully enter your details.
- Fill the application form and submit it after double-check.
- Pay the dues and then wait for the application to be processed.
- The Ministry of Finance will check your application which usually takes 3-4 weeks.
- If all the comments are reviewed successfully then you will receive the tax residency certificate in UAE by mail.
Important elements to know about Tax Residency Certificate in UAE
- The validity of the tax domicile certificate UAE is only for one year.
- Only Mainland and Free Zone companies can apply for this permit. Off-shore companies will not get TRC.
- The process of applying and receiving the tax certificate UAE takes around 16 to 24 days.
Benefits of tax domicile certificate for corporates/individuals
- Creates your credibility in the UAE business market.
- Builds authenticity and helps you to exclude taxes.
- Provide support to UAE economy.
- Maintain a strong business partnership with other registered companies in UAE.
- Allow you to save your resources and claim the previous tax you paid.
KWSME are professional business consultants in Dubai, UAE who can help you to get Tax Residency Certificate in UAE without any hectic procedure.
They have an expert team who can offer:
- Efficient documentation service.
- VISA processing.
- Professional guidance about tax policies in UAE.
- Translation services.
- Assistance in completing your documents.
- Create your links with governmental establishments.
Feel free to visit kwsme.com for further details and get exclusive information about UAE rules for business companies.