The UAE’s tax regime is one of the most attractive in the world. While there is tax on the import of goods, and a flat 5% VAT was introduced relatively recently, the nation’s corporate and personal income tax rate is still a very inviting 0%.
Naturally, this attracts entrepreneurs and business owners from around the world to set up in Dubai and the wider UAE. So much so that the country’s expatriate population accounts for over 80% of all residents.
However, for international entrepreneurs who do business around the world, benefitting from the UAE’s 0% rate can take a little administration. This is particularly the case if you reside in another country for much of the year.
To prove that you and your business are eligible to be taxed at the UAE rate, rather than that of your home or another country, you may need a tax domicile certificate.
The good news is that, provided you are eligible and you work with a local expert, getting this document can be quick and easy. When you apply with Business Incorporation Zone (BIZ), we can manage the process of obtaining a tax domicile certificate on your behalf, ensuring all paperwork is present and correct before submission. Get in touch to book a free consultation.
What is a tax residency certificate?
A tax residency certificate is a piece of documentation that proves the holder is a UAE resident, and eligible for the country’s 0% tax rate. It is issued by the UAE Ministry of Finance and used to provide clarity in respect to double tax avoidance agreements between the UAE and another country – usually the holder’s country of citizenship.
A double tax treaty is essentially an agreement between two countries to protect residents and citizens of either state from paying tax in both. For example, if you are a UK citizen but resident of the UAE and in possession of a tax residency certificate, you are not required to pay UK income tax on income earned in the UAE.
Tax residency certificates can be issued to individuals and corporate entities.
Am I eligible for a tax domicile certificate?
To be eligible for a tax domicile certificate in Dubai, UAE, you must have a valid residency permit, and reside in the UAE for at least 180 days per year or be able to demonstrate strong ties to the country.
You will also need to have a UAE bank account for at least six months showing adequate activity.
Steps for an individual to get a tax domicile certificate in Dubai?
If you intend to apply for a tax domicile certificate without expert help, you will first need to create an account with the UAE Ministry of Finance. You can do this online.
Next, you’ll need to complete your tax residency application form and gather all relevant paperwork. This may include a copy of your passport, your residence permit, and bank statements, as well as salary certificates, assorted tax forms, and all relevant documents from the General Directorate of Residency and Foreigners Affairs.
Finally, you will need to submit both your completed application form and all relevant paperwork online, pay the relevant fee and then wait for your certificate to be issued.
Steps for a company to get a tax domicile certificate in Dubai
The process to obtain a tax domicile certificate for corporates in the UAE is similar to that above. However, when making an application on behalf of a company, you will be required to submit some of the documents already listed, along with a copy of your Memorandum of Association, ID for all partners, shareholders, and directors, a copy of your audited accounts, and more.
In both cases, it can be easier and more cost-effective to make your application with the assistance of an expert in UAE tax and business processes.
What is the cost of a tax residency certificate in Dubai, UAE?
Whether a corporate or individual, applying for a tax domicile certificate in the UAE is not overly expensive. Individuals should expect to pay in the region of AED 2,000 to AED 2,500. For corporate applicants this price range is between AED 10,000 and AED 11,000.
Apply for your tax domicile certificate in Dubai with BIZ
If you’re armed with the right expertise, applying for a tax domicile certificate in Dubai doesn’t have to be overly complicated.
That being said, it does require a level of prior knowledge of the process. And it requires a level of focus that most entrepreneurs simply do not have the time to provide.
What’s more, it is important to note that the process is only straightforward if your account application is complete at the time of submission and free from errors.
To help you ensure that this is the case, it’s a good idea to work with a company formation specialist such as Business Incorporation Zone. Get in touch today for a personalised quote.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your tax domicile certificate application, we also offer visa and immigration services and can handle all government formalities, permissions, work permits, and visa applications required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license, visa, and bank account applications, and take care of all the necessary admin – leaving you free to get on with running your business.
Why work with BIZ?
Incorrect paperwork and documentation can significantly delay your application, and in some cases, lead to refusal. That’s why it’s always worth applying for your tax domicile certificate in the UAE with the help of the experts at BIZ.
We’ll manage the entire process for you, liaising with all government bodies, and ensuring that your application is in good order before submission.