What is a Tax Residency Certificate?

It’s a document given to business owners who pay taxes in another country for what they earn in their business. Since the UAE has entered into the Double Tax Avoidance Agreement (DTTA), nationals from the countries the UAE has signed the agreement with, can now obtain this certificate and take advantage of the benefits that come with it.

Who Can Have a Tax Residency Certificate?

Anyone from individuals to onshore and free zone companies, who meet certain conditions are permitted to have a tax residency certificate. Offshore companies are not allowed to have this document as they are not considered residents of the country.

The documents necessary include a valid passport and visa copy, Emirates ID copy, a six-month UAE bank statement, valid proof of income in the UAE. (E.g., employment agreement, salary certificate, etc.), tenancy agreement or title deed and payment for the application fees. However, the requirements for companies may differ and should be checked. A few of them include a copy of the company’s valid trade license, tenancy agreement or title deed certified copy, physical office space not a Flexi desk, valid passport, visa, and Emirates ID copies of the company Director/Manager. The latest audited financial statement, bank statements for the last six months, and application fees of AED 10,000.