Tax Residency Certificate in Dubai

Professional Assistance to avail the Tax residency certificates in Dubai !

Commercial activities are soaring high with many global trade linking with UAE. However, it becomes quite confusing once you get trapped in the tax regime. As a result, businesses are now dealing with the problem of double taxation. To resolve this issue, a tax residency certificate in Dubai will come handy.

A Tax Residency Certificate in Dubai , also known as a Tax Domicile Certificate, proves that you pay taxes to a certain jurisdiction and permits you to benefit from double taxation treaties. The Ministry of Finance of the United Arab Emirates issues Tax Residency Certificates that are good for one year. To get a Tax Residency Certificate in Dubai, an individual must submit certain documents and applications, as well as make payments.

With a tax residence certificate in Dubai and the additional advantage of a double taxation agreement to follow, the stress of taxation can be eliminated. Any company that runs on the mainland or in a free zone which has been functioning in the country for the past one year is eligible for a Tax Residency Certificate (TRC).

What is Tax Residency Certificate in Dubai?

Tax Residency Certificate in Dubai, also known as Tax Domicile Certificate, allows you to take advantage of double taxation avoidance agreements that the UAE has signed. A certificate granted to qualifying natural and legal persons to benefit from Double Tax Avoidance Agreements (DTAA) on income signed by the UAE.

Commercial Activities Certificate?

A certificate that allows a business person to refund VAT paid outside the UAE, regardless of whether DTAAs apply.

Validity of Dubai Tax Residency Certificate in Dubai?

The validity of the tax residency certificate in Dubai is one year from the date of issue. Often called as TRC Dubai, companies and individuals can use the Tax Residency Certificate. Depending on your specific requirements, you may need to file several certificate applications.

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 Dubai, individuals must submit the following papers.
• Certificate of Salary (if the Applicant is an employee)
• Copy of the Business License (In case the applicant owns a Company in UAE with the applicant’s name)
• Confirmed bank statement of the last six months
• A copy of the tenancy contract or a certified copy of the (residential) lease agreement
• You'll need 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 published a report that tracks all entry and exit points.

For Companies

• A copy of the company's Certificate of Incorporation
• A copy of each director's, shareholder's, or manager's passport, as well as a copy of their current UAE residency visa.
• A copy of the shareholders' Emirates ID
• The business must have been in existence for at least a year and have a current UAE trade license (Mainland DED or Free Zone).
• A copy of the firm's Memorandum of Agreement (Memorandum of Association).
• A copy of the Company's tenancy contract
• Recently audited and certified financial records
• Bank stamped properly attested by the bank

How to Obtain aTax Residency Certificate (TRC) in Dubai?

A Tax Residency Certificate in Dubai, also known as a Tax Domicile Certificate, is an official certificate or document issued by the UAE Ministry of Finance to either a UAE-based company that has been in operation for at least one year or an individual with a UAE residency visa who has been permanently residing in the UAE for at least 180 days.

This Official Certificate is used to fully benefit from the UAE's extensive double tax treaties and double taxation avoidance agreements with over 76 countries across the world, and it is valid for one year from the date of issuance.

This Official Tax Residency Certificate in Dubai does not apply to Offshore Companies (International Business Corporations).

Duration of Time

• Processing for pre approval takes three to five business days.
• After it is approved, the tax residency certificate will be issued in 4-5 working days.

How to Apply for a Tax Residency Certificate in Dubai?

The steps in the online application process for a tax residency certificate in Dubai are as follows:

• To obtain tax certificates, log in or create an account using the FTA Portal.
• If you have already registered as a taxpayer, select "Yes" and enter your email address and TRN in the dashboard popup message.
• If you are a new taxpayer, select "No" and proceed with the application.
• Fill out the application for a tax residence certificate.
• Please upload the required files in PDF or JPEG format.
• Pay the application fee in order to finish the application.
• The application's status will be displayed on the dashboard.

The process of downloading a Tax Residency in Dubai

The user has to download the certificate, choose "Payment Pending" from the FTA Tax Certificate dashboard, and then pay for it. Clicking the symbol will allow you to download the certificate following a successful payment.

• The user will be taken to the Dirham payment gateway in order to finalise the payment.
• After a successful transaction, the user's registered email address will receive the Tax Residency certificate.
• Click on it to start the download.
• The password-protected file containing the certificate must be opened in order to view it.
• For the downloaded certificate, the password will be the username plus the last four digits of the user's mobile phone number.

Tax Residency Certificate Fee in Dubai

To obtain the Tax Residency Certificate in Dubai , some costs must be paid using the e-Dirham Card.

To provide the certification:

• Remit 2,000 Dirhams + 3 Dirhams.
• Following the request's final clearance by the Ministry, payment will be made.

In order to apply:

• Remit 100 dirhams + 3 dirhams.
• Payment must be made at the moment the work is submitted.

Regarding a Copy, Damaged, or Missing Original Certificate:

• Remit 100 Dirhams + 3 Dirhams.
• The payment will be made with the e-Dirham Card.

Benefits of Having Your Tax Residency Certificate in Dubai Issued

One of the many factors that attracts company to the UAE is its attractive tax environment. Let's look at how important it is to get one:

• Income taxes, both corporate and individual, are not included.
• It greatly encourages trade between countries.
• It attests to a person's or group's status in the legal system of the UAE.
• Possessing the certificate helps you to avoid having to pay extra taxes when you import or export goods.
• It improves bilateral trade relations.
• Two benefits come with holding the certificate as a resident of the UAE: you can avoid paying double taxes and take advantage of tax exemptions.
• Both individuals and businesses can acquire several certificates.

How Can We Help You?

Seeking professional tax advice and guidance for business governance is compliance with tax legislation. A successful tax plan provides an unbiased synopsis of the business model and its constituent parts.

We, at Reyson Badger, also provide Tax residency certificate services in Dubai for our clients. This service keeps businesses updated on the latest Tax regulations in Dubai, both those that have been newly released and those that have been amended. As Tax affects the majority of business operations, particularly pricing models and accounting systems, it is necessary for businesses to stay updated on the rules and regulations.

Call us today if you have any queries…!!!