Dubai and the wider UAE attract many prospective investors worldwide due to the low corporate and personal income tax rates. If you are an international entrepreneur benefitting from the country’s 0% rate or reside in another nation for much of the year, you must become a tax resident in UAE. You may need a tax residency certificate, also known as a tax domicile certificate, to prove that you and your company are eligible to be taxed in Dubai.
The UAE government has made treaties with several countries on double taxation avoidance. Individuals who can prove they have spent over 180 days in Dubai can avoid paying double taxes on their income, usually in their country of citizenship. Investors can also acquire a tax residency certificate in a free zone or on the mainland.
Requirements for Individual Tax Residency Certificate in Dubai, UAE
Only residents who have stayed in Dubai for a minimum of 180 days can apply for Tax Residency Certificate. How to obtain a UAE residency visa:
- Employment contract (government or private sector)
- Buying and owning property worth more than 1 million dirhams
- Registering a company in a free zone area
The documents to be submitted to the Ministry of Finance include the application form, copies of your passport, Emirates ID, UAE residence visa, UAE bank statements, proof of earnings in the UAE, and a copy of a tenancy agreement or title deed to a property.
Businesses applying for a Tax Residency Certificate also have documents that must be provided along with the application form. They include copies of the director’s passport, visa, Emirates ID, trade license, tenancy agreement or title deed, and proof of the physical office space. Also required is the company’s recent financial statement with the bank’s official stamp.
To get the certificate, set up an account through the Ministry of Finance’s website, fill in the application form, submit it along with the relevant documents, and wait for approval. Note that payment is required once the application has been approved.
In a nutshell, FreeZoneMarket.ae offers many benefits ranging from zero property and income tax to easy business setup in Dubai.