What is Tax Residency Certificate for Companies in Dubai?

Updated on Wednesday 23rd August 2017

What is Tax Residency Certificate for Companies in Dubai? Image
The tax residency or the tax domicile certificate is issued by the Ministry of Finance in the UAE and regards the onshore companies with a confirmed residence in Dubai, having a validity of one year. This important document allows companies to benefit from the advantages of the double taxation agreements signed with varied countries worldwide. For a better understanding of the importance of such tax residency certificate, it is suggested to speak to one of our accountants in Dubai.

Important details about the tax residency certificate in Dubai

The international business companies or the onshore companies in Dubai must apply for a tax residency certificate which helps them benefit from the double tax treaties advantages agreed with other countries, where there is no income, corporate or dividend taxes. The same important document can be issued for natural persons from abroad who work in the Emirates and who can also benefit from several tax exemptions stipulated in the double tax treaties signed between the UAE and their home countries. There are different conditions imposed for companies to apply for a tax residency certificate, a matter where our Dubai accountants can help. Furthermore, our team can help you with audits in Dubai for foreign companies with establishments in the Emirates.

Conditions to obtain a tax residency certificate in Dubai

Companies interested in applying for a tax residency certificate should provide to the financial authorities a complete audit report and several other documents which provide that firms are on the market and have daily activities. As for the natural persons who want to receive the tax residency certificate, one should offer information about the domicile in Dubai, whether it is a rented or an owned place in the city.

Once the tax residency certificate is issued, the companies and the natural persons must consider the rules and regulations which come with such a significant document. For example, if a person lives in the Emirates for a while and then spends a few days or months in the home country, this state must recognize the tax residency certificate and its applicability.

We remind that our accounting firm in Dubai can give full support and information about the tax residency for both foreign companies or natural persons registered in the Emirates, so please do not hesitate to contact us.

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