Tax Residency

Tax Residency

First, let’s figure out what Tax Residency is, and why people are trying to get it in the UAE. Tax Residency is a group of rules that determines the type of tax, the amount of tax and all tax liabilities.

If we talk about obtaining UAE Tax Residency by individuals, then there is a rule for them to stay in the country for at least 180 days a year. In some states, other factors are also considered, for example, ownership of real estate in the country or entrepreneurial activity and other financial interests.

In the United Arab Emirates, a Tax Certificate is a document confirming your status as a tax resident. This document confirms that physical or legal person has tax residence in the UAE, issued by the Ministry of Finance of the UAE.

What actions must be taken to obtain a UAE Tax Resident Certificate?

The first step is to obtain a residence permit. There are several ways to obtain it: buying real estate in the Emirates or opening a company in the UAE. It is worth noting that both methods have their pros and cons. Then, you will need to collect and provide a package of necessary documents. Do not forget about the immigration report, which confirms your trip to the UAE. It also needs to be attached to the package of documents.

At first glance, all these operations seem complicated, however, by contacting specialists, you can save not only your time and effort, but also your money. Professionals specializing in Tax Certificates obtaining can provide a comprehensive assistance in obtaining a tax resident status, prepare everything you need at the most difficult stages of registration.

If your goal is to make your company a tax resident, then you need to consider several very important factors. Firstly, your company should not be offshore. Secondly, the CEO must already have UAE resident status.

Having a business in your permanent residence, carefully study the rules and regulations of double taxation. The government of your permanent residence country may continue to levy taxes on you, even after you receive tax residency status in the Emirates. Consider this nuance and protect yourself from double taxation.

Why are so many people trying to get tax residency status in the UAE? The answer is clear - the UAE has a huge number of tax advantages! Both individuals and companies can obtain a Certificate. Obtaining a Certificate, you will receive tax benefits that will accelerate the growth and development of your business and become your competitive advantage. Also, a Tax Residency Certificate makes it possible to obtain a residence permit for your family members.

There is no income tax or corporate tax in the UAE. However, there is an exception for the taxation of the rental income of 5% and VAT of 5% for companies from 2018.

The period for which the certificate is issued is 1 year. The certificate must be renewed annually. It takes about 6 months to complete the procedure.