Tax residency in the United Arab Emirates – a UAE Tax Domicile Certificate for the company – US$ 550
In the times of globalization, many companies are not affixed to a specific geographical location. Instead, they conduct business activities all over the world. Thus, the overall income of such companies comes from several sources located in different countries. Naturally, every one of these countries tries to seize its share of this income in the form of taxes.
To give business companies a chance to avoid being taxed in several counties at a time, many states, including the UAE, make agreements with other states for avoidance of double taxation.
Private individuals and legal entities holding a UAE Tax Domicile Certificate (TDC) have the right not to pay taxes in a second country where they conduct business activities, if the UAE has an agreement for avoidance of double taxation with this country.
A Tax Domicile Certificate is an official document that is issued by the UAE Ministry of Finance to private individuals and legal entities.
Thus, such a certificate confirms tax residency of the company and allows it to obtain the UAE taxpayer status, which gives an opportunity to use all the advantages of this tax jurisdiction.
It should also be noted that the Emirates do not automatically exchange information about their tax residents with other states.
There are no taxes in the UAE on corporate income. However, a 5% VAT tax was introduced in 2018, which changed the UAE status from ‘tax-free zone’ to ‘low-tax zone’. This decision has received favorable comments from the international business community, as it has made the Emirates more suitable for foreign business people to do business there. Now companies can apply for the VAT payer status in the UAE that opens new perspectives for them in the international markets.
The United Arab Emirates have made agreements for avoidance of double taxation with the following countries:
Azerbaijan, Albania, Algeria, Austria, Armenia, Bangladesh, Bosnia and Herzegovina, Barbados, Brunei, Bulgaria, Belarus, Belgium, Hungary, United Kingdom, Vietnam, Venezuela, Germany, Guinea, Greece, Georgia, Egypt, Spain, Ireland, India, Italy, Yemen, Indonesia, China, Canada, Cyprus, Korea, Kenya, Kazakhstan, Lebanon, Latvia, Luxembourg, Lithuania, Malta, Malaysia, Mexico, Mauritius, Morocco, Mozambique, Mongolia, New Zealand, Netherlands, Poland, Pakistan, Portugal , Romania, Seychelles, Serbia, Syria, Singapore, Sudan, Slovenia, Tajikistan, Thailand, Turkey, UNIS, Turkmenistan, Uruguay, Ukraine, Uzbekistan, France, Philippines, Finland, Fiji, the Czech Republic, Montenegro, Sri Lanka, Switzerland, Estonia, and Japan.
The Tax Domicile Certificate remains valid for one year.
Prior to applying for such a certificate, the company has to conduct business activities in the UAE for at least one year.
Documents required for obtaining a UAE Tax Domicile Certificate for a company
The following documents have to be supplied in order to obtain a UAE Tax Domicile Certificate:
- Valid company business license. In accordance with the UAE Ministry of Finance requirements, such a license has to be issued minimum one year ago. This means that a company that is totally new in this country cannot obtain this certificate. At the same time, there have been cases when companies obtained a Tax Domicile Certificate after only six months of operation in the country.
- Passport scan, the so-called “Emirates ID” document and a UAE visa in the name of the owner or the CEO of the company. At least one of those has to be a UAE resident.
- Rent agreement for the company office. There have been cases when companies received the certificates without such an agreement but obtaining one is recommended at the moment the company is registered in the UAE.
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- Bank statement covering the last six months of operations with a bank stamp.
- Audit report covering one year.
The cost of obtaining a UAE Tax Domicile Certificate for a company
|2,015 dirhams (US$ 550)
|10,370 dirhams (US$ 2,825)
Attesting a UAE Tax Domicile Certificate for the use in other countries
For the certificate to be valid in other countries, it has to be attested by the UAE Ministry of Finance. This price of this service is about US$ 50.
The procedure of obtaining a UAE Tax Domicile Certificate for a company
A Tax Domicile Certificate is valid for one year. By default, the date the certificate comes into effect is the date of application. Thus, if the application is filed on July 20, 2019, this day will be automatically made the effective date, and July 19, 2020 will be automatically made the date of expiry. The applicant can set the effective date up to three years back if the company legally existed at that time. If, for example, the application is filed on July 20, 2019, the earliest effective date may be set to July 20, 2016. In this case, the expiry date will be set to July 19, 2017.
At the moment of application the first portion of the state duty of about US$ 30 has to be paid. Then, after the approval has been granted, the remaining US$ 2,795 of the state duty has to be paid. Afterwards an Internet link will be sent to the e-mail and the telephone number indicated in the application form to be used for downloading the certificate and printing it out.
Currently, application processing takes three to four weeks. After the state duty has been paid in full, the link to the certificate will arrive within 72 hours.
If you want professional consultancy on obtaining a Tax Domicile Certificate for a company, please contact us via e-mail: [email protected]
After the consultation, you will have to cover our service of obtaining a UAE tax residency certificate for you.
Payment can be made by any method you prefer: via a bankcard, or WebMoney, or Western Union, or by a bank transfer.
The cost of this service is US$ 550.
Immediately after receipt of the payment we begin gathering the information and collecting the documents for applying for a UAE Tax Domicile Certificate for your company.
Please write to us to [email protected] without any hesitation! We will help you obtain a UAE Tax Domicile Certificate for your company as soon as only possible without any overcharges!