UAE Tax Residence Certificate,
Do I need it? Is it worth it?

What is a UAE Tax Residence Certificate?
A Tax Residence Certificate is an official document issued by the UAE’s Federal Tax Authority (FTA) and can be used to establish/prove the country of tax residence. The certificate is valid for one year and once it is expired, it has to be renewed.

What is the UAE Tax Resident Certificate be used for? What are the objectives?
Legal entities (companies) operating in the UAE as well as individuals (e.g. UAE residents) may benefit from Avoidance of Double Taxation Agreements (DTA). But in order to benefit from such DTA it is generally required to provide a Tax Residence Certificates to prove that the person is resident in another country (e.g. UAE) and therefore is subject to tax in that country.

The Tax Resident Certificate is issued in order to take advantage of the DTAs on income to avoid a double taxation. Therefore, it helps the applicant to avoid paying taxation in two or more countries and moreover might also help to prove a residency in the UAE. Also, it may help to have an easier process of cross-border trade and investments.

Who can apply and obtain a UAE Tax Residence Certificate?
Either an individual or a legal entity (company) can apply and obtain a UAE Tax Residence Certificate as long as they meet the requirements applicable at the specific time.

What are the requirements for an individual to acquire the UAE Tax Residence Certificate?
The following documents are currently required for an individual persons Tax Residence Certificate application:

• Passport copy;
• UAE residence permit (visa) copy;
• Emirates ID copy;
• Certified copy of (residential) lease agreement, tenancy contract copy or title deed;
• Source of income (e.g. salary certificate, trade license etc.);
• A validated and stamped bank statement of the last six months from a “local” UAE Bank;
• A report from the General Directorate of Residency and Foreigners Affairs or Federal Authority for Identity and Citizenship (ICA) specifying the number of days the resident has stayed in the UAE (the applicant must have been a resident of the UAE for at least 180 days) and if applicable
• A Tax form from the country in which the certificate is to be submitted.

What are the requirements for a legal entity (company) to acquire the UAE Tax Residence Certificate?
The following documents are currently required for a legal entities (company) Tax Residence Certificate application:

• A valid copy of the trade license and if applicable a directors/shareholder’s certificates;
• Establishment contract certified by the official authorities (if not a Sole Company);
• A copy of the legal entities’ owners/partners/directors’ passports; Emirates ID and resident permit (visa);
• A certified copy of the lease agreement or title deed, valid for at least three months prior to the application (note: a physical office is mandatory for the application);
• A certified copy of the audited financial accounts;
• A validated and stamped bank statement of the last six months from a “local” UAE Bank and if applicable
• A Tax form from the country in which the certificate is to be submitted.

Is an application for a UAE offshore company possible?
No, a UAE offshore company cannot apply and obtain a UAE Tax Certificate, as the UAE considers the offshore companies as non-resident legal entities in the matter of taxation.

What is the procedure for the UAE Tax Residence Certificate? How can you apply for the Certificate?
In order to obtain a certificate, the applicant has to create an account with the FTA. If the account was set, an application is possible. The application form has to be filled out and uploaded alongside with the supporting documents for review and approval. The whole process can be done by the applicants; however, this can be a time-consuming process especially if the FTA needs additional documents and/or clarifications.

You can submit the documents to us, and we will apply for you for the Tax Residence Certificate and handle the whole process on your behalf.

If you would like to get more information about Tax Residence Certificates, including requirements and registration/application, please do not hesitate to contact either our office (dubai@meyer-reumann.com) or directly to Ms. Verena Nosko (verena@meyer-reumann.com).