In Dubai, a Tax Residency Certificate is an official document issued by the International Financial Relations and Ministry of finance. Today’s businesses are no longer limited by borders, the business sector has become privy to a global reach. The increase in cross-cultural business activities offers various perks and allows enriching business relationships on an international scale. However, there is a downside to becoming a general trader, you get taxed in different jurisdictions.
Since the total income is the revenue from countries which are independent. Each state is inclined to tax the income derived from its land. This often leads to double taxation. In order to protect businesses from capital loss. A resolution, the Double Tax Avoidance Agreement (DTAA) was adopted. The DTAA mandates the Federal tax authority to issue Tax Residence certificate UAE to enable residents and investors to enjoy the benefits of the treaty.
A Taxation Residency Certificate usually issued by the UAE Federal Tax Authority (FTA) to a company operating in the country to establish tax residency and allow it to benefit from the double taxation avoidance agreements.
All individual, onshore and free zone businesses are allowed to claim the Tax Residency Certificate after fulfilling certain conditions. However, UAE ministry of finance declared Offshore companies’ ineligible for tax residence certificate (TRC Dubai), they can only receive a tax exemption certificate instead.
In addition to business entities, a tax residency certificate is also available to individuals who have resided in the Dubai for at least 180 days and wish to establish a tax residence in the country. This is particularly beneficial for individuals whose home countries do not have a double taxation treaty with the UAE. But as mentioned above, conditions needed to fulfilled to apply.
For individuals and companies, there are some certain requirements that need to be fulfilled before applying for TRC or sometimes called a Tax Domicile Certificate. Listed below are all the steps that how to obtain Tax Residency Certificate in UAE.
The following documents are required:
For companies, there are also some certain conditions that need to be fulfilled by them before applying for TRC Dubai UAE. Any company cannot just simply request or apply for TRC without checking. Listed below are the conditions:
Assuming all relevant documents are available, the pre-approval process with FTA usually takes 4-5 business days. After pre-approval and confirmation that all documents are correct, the FTA may take an additional 5 working days to issue a certificate of tax residency.
The Tax Residence Certificate / Tax Domicile Certificate is valid for 1 year and can be renewed every year thereafter subject to a resubmission and renewal process.
Obtaining a Tax Residence Certificate in UAE has several benefits. The Dubai government allows companies and individuals to hold various certificates. This allows income to be covered on both a corporate and individual level.
Other benefits of a tax registration certificate include:
To support their goals and business development plan, the UAE has 115DTAA with several business numbers. This also means that there are various tax planning opportunities for companies and individuals with a valid tax residency certificate. Companies also gain access to international markets, especially when they set up their business in Dubai or Abu Dhabi.
If you want to get Your TRC in Dubai, Beyond View can help you achieve it seamlessly. Obtaining a UAE Tax Residence Certificate has several advantages. If you want to avoid paying income tax in your country of tax residence and also the UAE, it may be best to get the certificate as soon as possible after moving to the UAE.
Our professional staff here at Beyond view will make your job easier by getting the relevant documents and certifications to finish the Tax Residency Certificate application process on time. Also, if you need any sort of consultancy or assistance about obtaining the TRC as a company or individual or any sort of startup, you can Contact us and book a free consultation with our experts today.