As a country once dependent on oil revenue, the UAE has evolved into a country with a diverse economy that attracts investors from around the world within a brief period.
As centers of international finance, Dubai, and Abu Dhabi have embraced the latest technologies and have developed into world-renowned tourist destinations with world-renowned landmarks and high-class hotels.
In addition to its favorable tax environment, the UAE offers many other business incentives. For example, income tax is not applied to most UAE-based companies. In addition, several double taxation agreements have been negotiated with trade partners to prevent the same taxpayer from paying taxes twice.
The UAE currently has 123 in force or negotiation for double taxation agreements. It allows member countries to exchange goods, capital, and services freely with other countries and protects them from double taxes.
Tax Domicile Certificates (TDC), also known as Tax Residency Certificates (TRCs), are required for companies or individuals to benefit from the UAE's double taxation avoidance agreements.
Individuals (Formally known as Natural Person) operating in the UAE may utilize the double taxation avoidance agreements by obtaining a Tax Residency Certificate issued by the UAE Federal Tax Authority (FTA).
Residents of the UAE who have lived there for at least 180 days and want to establish tax residency can apply for a Tax Residency Certificate. Those whose native country does not have a double taxation agreement with the UAE will benefit from this opportunity.
Requirements to obtain the Tax Residency Certificate by a Natural Person
An individual's requirements for obtaining a Tax Residency Certificate differ from those of a corporation.
To proceed, the following documents must be submitted:
A preapproval process with FTA typically takes four to five business days if all necessary documents are available. However, it can take up to 5 working days for the FTA to issue the tax residency certificate after pre-approval and confirmation that all documents are correct.
Upon resubmission and renewal, the Tax Residency Certificate / Tax Domicile Certificate will be valid for another year.
A UAE Tax Residency Certificate offers many benefits.
The AMCA has direct access to government departments and can assist you with acquiring the TDC and any other regulatory approvals and licenses. In addition, we can help you obtain a Tax Residency Certificate in the UAE as an individual or a company, or with any other company setup, restructuring, local partner, or PRO support matter in the UAE.
Any natural person who wants to claim tax benefits or exemptions under a double taxation avoidance agreement (DTAA) between the UAE and another country may need to obtain a TRC.
An applicant's TRC is valid for one year beginning with the start of the financial year selected by the applicant.