The United Arab Emirates policies are designed to support immigrants who are planning to permanently stay in any state and start their business setup. The tax residency certificate in UAE is one of those requirements which are obligatory for foreign investors. The reason to get a tax certificate UAE helps entrepreneurs to avail the advantages of DTAA (Double Taxation Avoidance Evidence).
The UAE government signed a contract with more than a hundred countries to help the investors and offer them a legal permit to avoid being taxed from two states at once. The business startup registration demands VISA/residency credentials and tax domicile certificate UAE plays a significant role to make you a legal citizen of Dubai/Abu Dhabi. To understand this certificate’s importance in UAE, let’s take a detailed look and requirements.
What is Tax Residency Certificate in UAE?
The tax residency certificate in UAE is issued by Finance Ministry and FDA (Federal Tax Authority). This license is also known as tax domicile certificate UAE. It is an official document issued by UAE bureaus to confirm your company’s legality and the company’s owner’s residential eligibility.
The company owner or the individual can use this permit at one time for one particular country and it has to be renewed exactly after one year. After signing this paper, the foreign entrepreneur accepts the rules and regulations of the UAE as a legal citizen.
The violation of the tax certificate UAE can result from facing serious consequences which includes termination of your immigration card. The permit act as an entry into UAE commercial market and by following the guidelines properly you can get amazing benefits out of this certificate.
How to apply for Tax Residency Certificate in UAE
There are two authentic principles that explain how to apply for a tax residency certificate in UAE? One is designed for the individual and the other one is for registered companies in all states of UAE. To apply for the tax domicile certificate UAE, you need to register yourself and your enterprise with the DED (Department of Economic Development) and create an account on the Ministry of Finance (MOF) portal.
There are five major requirements to apply for this permit which are:
- Your firm’s email ID.
- Company owner’s UAE mobile number.
- UAE immigration card details.
- Registration of individual/Company in the UAE system.
- Attach the documents in PDF or JPEG format.
After sending these details you can consult any professional consultancy agency that can assist you to collect documents for a tax permit.
Documents Required for Tax Residency Certificate in UAE
The requirements for tax certificate UAE slightly differ concerning a sole owner of the company shareholders but major conditions remain the same for both entities.
- For Individual
Any individual who wants to apply for a license must be working or staying in UAE for at least 190 days.
After completing this rule, they need to assemble these documents:
- A copy of the Passport.
- Emirates ID.
- Valid resident permit.
- A certified copy of the Tenancy Contract.
- Bank statement for six months of that specific year.
- Salary or Income certificate.
- Tax papers or reforms from that precise country where the document will be sent.
- Immigration report from (Foreign Affairs Departments) about your residency duration in UAE for more than 183 days.
After attaching these documents with your attested application, you need to wait for some days. Your business consultants can give you an update about your submission report and may be sent you the certificate at your residence or your company office.
- For Companies
Any company which is operating for more than one year can apply for the tax residency certificate in UAE.
The documents which are required for tax permit UAE are:
- The attested copy of your valid trade license.
- Residence VISA copy of the company owner.
- Name of the approved applicant.
- The passport copies and Emirates ID of the shareholders.
- A copy of Memorandum of Association.
- A copy of Articles of Association.
- A certified copy of the tenancy contract (Ejari)
- The format of the template in which the certificate is demanded.
The tax domicile certificate for corporates arrives late compared to individual permits. If the company owner hires professional business consultants in UAE, then they can give them the tax license within days.
Fee for Tax Residency Certificate in UAE
The charges amount for tax certificate UAE may fluctuate with time but service remains the same.
Here are those packages for the tax clearance certificate UAE:
- Submission for the certificate comes in AED 100/200.
- The E-certificate issuance is AED 2000 TO 10,000.
- The issuance of an E-certificate for a non-registered applicant comes in AED 10,000.
- You need to pay a small amount of subscription fee for the printed copy of the E-certificate if Finance Ministry demands it.
Advantages of tax domicile certificate UAE
- Ensuring your authenticity among government sectors, business activities and increasing UAE credibility globally.
- An individual can avoid income tax.
- The corporate and the individual can apply for the certificate.
- This permit can view the status of the enterprise and individuals in the country.
- This certificate removes the cluster of export and import taxes.
KWSME is a business consultancy agency which provides the exceptional level of service to their clients related to tax residency certificate in UAE.
KWSME can help you in the following courses:
- Help you resolving all tax issues.
- VISA processing.
- Documents attesting.
- Advising you on the best investment and tax structure for your corporate.
- They can maximize you’re your profit by cutting value-added tax on your business activities in UAE.
- Translate your form-filling.
- Create links with DED, Ministry of Labor, and Dubai Chamber.
Visit the website kwsme.com and get the best details about their services for your tax residency permit.