The UAE’s tax regime draws admiring glances from every corner of the world. While not an entirely tax-free environment, it is fair to say that the level of taxation here is relatively low.
With 0% levied on all personal and corporate income, the only tax of note in the UAE is a flat 5% VAT.
The UAE also benefits from a number of double tax treaties with countries around the world, including Canada, India, New Zealand and the UK.
To benefit from these treaties, UAE tax residents must submit a Tax Residency Certificate. This is essentially a document that allows the bearer to avoid double taxation in the UAE and their country of origin.
Could the UAE Tax Residency Certificate be advantageous to you and your business? Keep reading to find out.
What is a tax residency certificate?
Tax Residency Certificates – otherwise known as Tax Domicile Certificates – are official documents issued by the UAE Ministry of Finance.
Certificates can be issued to a business or an individual with an eligible UAE residency visa.
The certificate allows the holder to take advantage of the UAE’s double tax treaties, which it currently has in place with almost 100 countries worldwide.
What is a double tax treaty agreement?
A double taxation treaty is a (usually reciprocal) agreement that allows a foreign company or individual that pays tax elsewhere to mitigate any potential tax burden in the UAE.
As the UAE operates a 0% tax rate on personal and corporate income, its double tax treaty is particularly advantageous for the nation’s expatriates.
Those operating in the UAE and elsewhere may be liable to lower rates of withholding tax, thus reducing their overall tax burden.
For example, an expatriate of a country with a tax treaty with the UAE, such as Austria, would not pay Austrian income tax on any revenues generated within the UAE. Whereas an expatriate of the USA would be liable to pay American income tax on any amount earned anywhere in the world.
The UAE has current double taxation agreements with more than 90 countries worldwide, including 40+ in Europe, 20+ in Asia, 10+ in Africa, plus others in the Americas and the Caribbean.
Nations with UAE double tax treaties include:
| Albania | Algeria |
| Austria | Azerbaijan |
| Belarus | Belgium |
| Bulgaria | Brunei |
| Cyprus | Egypt |
| Georgia | Finland |
| Hungary | Germany |
| Italy | India |
| Kazakhstan | Japan |
| Kazakhstan | Korea |
| Latvia | Lebanon |
| Malta | Lithuania |
| Morocco | Mauritius |
| Netherlands | Mexico |
| Philippines | New Zealand |
| Russia | Poland |
| Spain | Senegal |
| Switzerland | Sri Lanka |
| Seychelles | Syria |
| Ukraine | Tunisia |
| United Kingdom | Vietnam |
How to get your UAE tax residency certificate
The tax residency certificate is issued by the Ministry of Finance. The best way to apply is with the help of a UAE company setup and tax expert such as Set Hub. We have an expansive knowledge of the UAE tax system and its treaties with other countries.
Applying with Set Hub is both fast and straightforward. Simply provide us with the required documentation and we’ll do the rest.
Documents required for a UAE tax residency certificate for companies
The following documents are required before a corporate tax residency certificate can be produced.
- A copy of your trade license
- Passport copies for all managers and shareholders
- Proof of residence visa copies for all managers and shareholders
- A certified copy of your latest audited financial statement
- Six months’ worth of corporate bank statements (validated)
- A certified copy of your business lease or tenancy agreement
- Copy of Emirates ID for all shareholders and managers
- Relevant tax forms from the country in which the certificate is to be submitted
Documents required for UAE tax residency certificate for individuals
Individuals must provide the following documents when applying for a tax residency certificate.
- A copy of your passport
- A copy of your residency visa
- A copy of your Emirates ID
- Your latest salary certificate
- Six months’ worth of bank statements (validated)
- A certified copy of your lease agreement or tenancy contract
- Documentation from the General Directorate of Residency and Foreigners Affairs detailing the number of days you have been resident in the UAE
- Relevant tax forms from the country in which the certificate is to be submitted
How long does it take to get a UAE tax residency certificate?
When making your application with Set Hub, the pre-approval process takes around one week. The certificate is then usually issued around five to seven working days later.
Applying for your own tax residency certificate may take a little longer, as the process requires relatively detailed knowledge of the UAE tax system. That’s why it is always a good idea to work with the experts at Set Hub.
Apply for your tax residency certificate with Set Hub
Hopefully, this guide has made clear that if you’re armed with the right knowledge, applying for a tax residency certificate doesn’t have to be overly complex or expensive.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your application is complete at the time of submission and free from errors.
To help you to ensure that this is the case, it’s a good idea to work with a specialist such as Set Hub when making your application.
We are a team of UAE company setup and tax professionals who are passionate about bringing only the highest levels of service to the country’s expatriates.
As well as handling your tax residency certificate applications, Set Hub can also assist with the formation of UAE business, the opening of corporate bank accounts and can also advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visas applications that are required to trade in the UAE. Let us do the hard work, get in touch with Set Hub – call 800 SETHUB (738482), or email [email protected] for more information.
