When listing the many benefits of doing business in the UAE, it is not long before the country’s tax regime is up for discussion. Still, at 0% on corporate and personal income, it ranks among the most attractive rates in the world.
As well as a zero rate, UAE residents can benefit from double tax treaties with many major nations worldwide. This includes the likes of Canada, Germany, India and the UK.
However, taking advantage of these treaties and the UAE’s attractive tax rate requires a tax residency certificate. With the right support, obtaining one is easy, provided you are eligible and abide by the relevant conditions.
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Tax Residency Certificate in Dubai – What is it?
Many countries issue tax certificates. In the UAE, the issuing body is the Ministry of Finance. Certificates can be issued both to individuals and corporate entities. Individuals must hold a valid UAE residency visa.
The UAE and USA do not have a treaty in place, meaning a US citizen would still be liable for full taxation in their home country. Meanwhile, a German citizen would pay a 0% tax in the UAE and avoid income tax in Germany.
With a 0% tax rate on offer, this can be hugely beneficial to UAE residents originating from double tax treaty countries.
To find out more, visit our website, or get in touch with us via setup@meydanfz.ae or 800FZ1.
The UAE and USA do not have a treaty in place, meaning a US citizen would still be liable for full taxation in their home country. Meanwhile, a German citizen would pay 0% tax in the UAE and avoid income tax in Germany.
Other countries with tax treaties with the UAE include:
| Albania | Algeria |
| Austria | Azerbaijan |
| Belarus | Belgium |
| Bulgaria | Brunei |
| Cyprus | Egypt |
| Georgia | Finland |
| Hungary | Germany |
| Italy | India |
| Kazakhstan | Japan |
| Kenya | Korea |
| Latvia | Lebanon |
| Malta | Lithuania |
| Morocco | Mauritius |
| Netherlands | Mexico |
| Philippines | New Zealand |
| Russia | Poland |
| Spain | Senegal |
| Switzerland | Sri Lanka |
| Seychelles | Syria |
| Ukraine | Tunisia |
| United Kingdom | Vietnam |
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Steps and documents needed for an individual to get a Tax Residency Certificate in Dubai
The first step in applying for a tax residency certificate is to seek assistance from a UAE business expert such as the Meydan Free zone. We can assist with the entire process, advising on the best approach and liaising with relevant government bodies.
Your application should be made to the UAE Ministry of Finance. To obtain a tax residency certificate, you will need to supply some or all of the following documents:
- A copy of your passport
- A copy of your residency visa
- A copy of your Emirates ID
- Your latest salary certificate
- Six months’ worth of bank statements (validated)
- A certified copy of your lease agreement or tenancy contract
- Documentation from the General Directorate of Residency and Foreigners Affairs detailing the number of days you have been resident in the UAE
- Relevant tax forms from the country in which the certificate is to be submitted
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Steps and documents needed for a company to get a Tax Residency Certificate in Dubai
The process of applying for a tax residency certificate for corporates in the UAE is the same as above. However, companies must provide the following documentation:
- A copy of your trade license
- Passport copies for all managers and shareholders
- Proof of residence visa copies for all managers and shareholders
- A certified copy of your latest audited financial statement
- Six months’ worth of corporate bank statements (validated)
- A certified copy of your business lease or tenancy agreement
- Copy of Emirates ID for all shareholders and managers
- Relevant tax forms from the country in which the certificate is to be submitted
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In both cases, when applying with the help of an expert, the timeframe for obtaining a tax residency certificate is usually around two weeks.
As the process involves considerable knowledge of the UAE tax system, applying for a tax certificate alone can take much longer.
Cost of Tax Residency Certificate in Dubai, UAE
The cost of obtaining a tax residency certificate in Dubai, UAE, is approximately AED 2,000. There may be other fees involved for review and submission, depending on how you make your application.
To find out more, visit our website, or get in touch with us via setup@meydanfz.ae or 800FZ1.
What are the benefits of obtaining a UAE Tax Residency Certificate?
UAE investors benefit from access to international markets when setting up a business in Dubai or Abu Dhabi. The added benefit of being a Tax Resident in the UAE and obtaining the UAE Tax Residency Certificate is to avoid double taxation and receive tax incentives by being a resident in the UAE. Individuals and companies are permitted to obtain separate UAE Tax Residency Certificate certificates, which allow income to be covered at the individual and corporate levels.
Your business structure and individual circumstances should be taken into account when planning your taxes. It is always a good idea to seek professional tax advice and accounting and finance support to ensure that your corporate structure and individual situation align with tax rules. In this way, you can maximize the benefits of UAE tax residency.
For a full breakdown of the cost, get in touch with Meydan Free zone.
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Know more about business setup in Dubai with Meydan Free Zone
Meydan Free zone is a thriving, centrally located economic district with one of the most prestigious business addresses in the region.
We offer our businesses a host of innovative investment and lifestyle benefits in a secure, regulated environment that empowers productivity. And we can help you join them too.
Our expert team can assist the entire company formation journey, from registering your company name to managing your license and visa applications.
Whether you want to know more about running or relocating your existing business – or you’re laying the groundwork to launch a new enterprise – we can help.
And it couldn’t be easier to get started. All your individual business needs can be met with a smooth registration process, tailored packages, and assistance on-hand.
