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Time Limitations for Tax Residency Certificate in UAE


The UAE immigrants’ policies are extremely positive for foreign investors. The government offers great facilities and perks to starters who follow legal documentation procedures in a given duration. The tax residency certificate in UAE is required to help entrepreneurs and foreign business firms to avoid double taxation. This permit can help business owners in various ways and to acquire it you need to follow some basic guidelines which will be discussed.

First, you need to understand the major purpose of tax domicile certificate UAE.

What is Tax Residency Certificate in UAE?

The tax residency certificate in UAE is delivered to the business community by the Ministry of Finance and International Financial Relations Departments. This permit allows companies and individuals to extract the maximum advantage of double tax evasion. The free zone or mainland company can get benefits out of tax certificate UAE. The individuals who are planning to set up their enterprise within UAE can also use this certificate to avoid value-added tax.

The tax domicile certificate for corporates and individuals has a limited duration of activity and after that, they get expired. To activate or renew them you need authentic instructions through which you can properly use them for a long period.

READ: Your Ultimate Guide To Tax Residency Certificate in Dubai UAE

The Importance of Tax Residency Certificate in UAE

The main goal to avail tax domicile certificate UAE is directly linked with the advancement of national economic growth and provide facilities to fresh foreign investors.

The objectives for tax certificate UAE are:

  • To avoid giving taxes in more than one country.
  • To give authentic evidence that the applicant is a legal resident of UAE.
  • To increase cross-border trading activities.
  • To help the UAE government with the smooth verification process.
  • To grow the credibility of the UAE business market globally.
  • To boost UAE economic diversity.
  • To support the UAE government’s future development goals.

What are the time limitations for a Tax Residency Certificate in UAE?

The tax domicile certificate UAE is valid for only 12 months. Any applicant who can be an individual UAE resident or a free zone – mainland business owner must stay in UAE for a minimum of 180 days. The non-resident who leaves UAE before this time limit will not be entertained with this trade permit. The one-year limitation helps the foreign investors to avoid any extra tax obligations and they can earn maximum profit through their business activities in any UAE state.

The free zone – mainland companies must operate for at least one year in UAE are eligible to apply for the tax certificate UAE. To apply for the tax domicile certificate for corporates you must have an official email and a registered account on the portal of the FDA (Federal Tax Authority).

READ: How to obtain Tax residency certificate in UAE

How to apply for the Tax Residency Certificate in UAE

The applying process for tax domicile certificate UAE is consists of some steps which are mandatory for the individual or company to follow. The documents for an individual must be legal and if any authorized paper is missing will automatically result in termination of your online application.

Documents for an individual are:

  • Copies of Immigrant card.
  • Residential lease agreement.
  • Income certificate.
  • Passport copies.
  • Valid attested permit of residence.
  • Tax forms where the certificate will be delivered.

For Companies

  • Copies of Trade license and partners’ legal documents.
  • Company owners and business partners’ passport copies.
  • The official residence ID and legal papers copies.
  • Enterprise contract approved by official authorities.
  • Certified audited financial accounts.
  • 6 months signed bank statements and transaction details.
  • Copy of organization business model and structure charts.
  • Certified tenancy agreement.

The tax domicile certificate for corporates is issued to exempt them from VAT (Value Added Tax). The individual residents can also achieve benefits through VAT by getting this permit and use it for their sole proprietor business. Other than zero VAT there are some great benefits of tax certificate UAE which are:

READ: How to obtain Tax domicile certificate in UAE

Benefits of Tax Residency Certificate in UAE

  • Claim your taxes after getting a tax domicile certificate for corporates.
  • Support from the government by encouraging fairness and protecting the UAE economy.
  • Both individuals and companies are capable of applying for the certificate separately at one time.
  • Removes tax problems related to import and export activities.
  • The tax residency certificate in UAE acts as the best proof for the company working legally in any state.
  • Helps entrepreneurs to escape double taxation hurdles.

How KWSME can help you.

KWSME are business advisors in Dubai, UAE who have great experience in company startup registration and tax planning. KWSME can help you to get a tax residency certificate in UAE within weeks. They have the best professional team which will guide you in all complex issues and resolve them effectively and efficiently.

KWSME offers:

  • VISA processing.
  • License approvals and assembling credentials.
  • Sending paperwork to governmental departments.
  • Creating links with governmental bureaus such as Dubai Chamber, Ministry of Labor, Emirates Identity Authority, and DED (Department of Economic Development).
  • Assisting in filing documents and their attesting.
  • Advising in tax requirements and decision-making process.
  • Helping you to get maximum profit out of double taxation agreement.
  • Visit their website to get further details about taxation policies in UAE.

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