Tax Residency Certificate
Tax Residence Certificate in the UAE is a document that will act as proof of residency for individuals and corporates operating in the UAE. They will be able to utilize the Double Tax Avoidance Agreement Treaty (DTAA) and avoid paying double tax in their home country for the income earned in the UAE.
The Tax Residence Certificate is issued by the Ministry of Finance in the UAE. Companies and individuals who are presently UAE residents can obtain a Tax Residency Certificate to avoid double taxation.
The UAE has signed a Double Taxation Avoidance Agreement (DTAA) Treaty with 137 countries. So, it will be able to issue a Tax Residence Certificate to all eligible companies and individuals from these countries who are currently residing in the UAE.
Tax Savings and Double Taxation Avoidance Agreement (DTAA) Treaty
The Double Taxation Avoidance Agreement (DTAA) is part of the global strategic partnerships of the UAE with other countries in the world. DTAA facilitates tax savings for foreign investors who have a business investment and is a resident of the UAE. UAE has signed the DTAA agreement with 137 countries in the world. This enables investors with UAE residence visas to avail of tax exemption from their home country. The Ministry of Finance in UAE has the Double Taxation Avoidance Agreement in place to promote the hassle-free exchange of goods, services, manpower, technology transfer, and other resources on demand.
Taxation rules will be applied to the investor or the business only once and further, in the home country of the foreign investor, there will not be any tax levied on the capital gains or profits from overseas transactions. The DTAA Framework is aimed at facilitating cross-border trade more effectively with no taxation hassles for the investors. As per the DTAA Framework, they will not be any double taxation in their home country for the income earned in UAE by the foreign investor.
How to obtain a Tax Residence Certificate in UAE?
Tax Residence Certificate in UAE will help the foreign investor to avail benefits of the Double Taxation Avoidance Agreement (DTAA). It will provide the residence proof for the foreign investors provided they meet the required criteria. UAE residents who have stayed in the country for more than 180 days over the year and companies that are registered in UAE for more than a year qualify for the Tax Residence Certificate. Individuals and Corporates can obtain the Tax Residence Certificate from the Ministry of Finance.
AURION will guide investors on the right way to secure their Tax Residence Certificate. The team will require a few documents from your company such as the trade license, shareholder profiles, bank statements, tenancy contract, and the home country Tax Forms. Similarly, for individuals (Freelancers/top-level executives) their residence proof (tenancy contract in UAE), personal bank statement, UAE residence visa, Emirates ID, and the home country Tax Forms, must be required to process the Tax Residence Certificate.
High Net Worth Investors can fly into UAE to set up a company and get UAE Residence Visa as part of managing their business assets in their home country. They can obtain the Tax Residence Certificate and save on Double Taxation in their home country for their income earned in UAE. There are many options for obtaining a Resident Visa in UAE and become a Tax Resident of UAE eventually. The foreign investor looking at a favorable investment opportunity and obtaining a Resident Visa in UAE have the following options to look at:
Apply for Tax Residence Certificate and Save Tax in Home Country
UAE is the perfect place for tax savings by applying for the Tax Residency at a lower cost. UAE is a Tax-Free Country, High-Net-Worth Individuals can benefit greatly by residing in the UAE.
In UAE, one can apply for a Taxation Residency Certificate if the individual has resided in UAE for more than 183 days. In the case of Corporates, any company that has been incorporated for more than a year is eligible to apply for Tax Residence Certificate in UAE.
UAE is home to a host of Multi-National Companies, Startups, and small businesses. It has immense growth potential as there is a large addressable market in Europe and Asia that can be managed from UAE. It is a perfect place to start a company and settle with your family.
The safety, improved lifestyle, entertainment, business opportunities, governance, banking system, healthcare, hospitality, etc., make UAE a perfect choice for High-Net-Worth Individuals to settle in UAE and invest in various business sectors in the country.
Eligibility to Apply for the Tax Residence (Tax Domicile) Certificate
Individuals:
The Individual must be a UAE resident and be in UAE for at least 183 days a year.
Also, If you are physically present in the UAE for more than 90 Days in the last 12 months, then you must meet any of the following criteria. You must be either a UAE Citizen, a GCC National, or an expatriate with a residence visa in the UAE. Also, you must have a permanent residence in the UAE and work or conduct any business in the UAE.
Companies:
Resident companies in UAE – Free Zone and Mainland companies are eligible to apply for Tax Residency Certificate in UAE.
However, an offshore company is considered outside the scope of the Tax Residence Certificate as it is not a resident company of UAE. Also, the Branch of a Foreign Company does not qualify for a Tax Residence Certificate, there is an exemption to this if the shareholder of the foreign company is a UAE resident.
Documents Required for Applying for Tax Residence Certificate in UAE
Following documents must submit along with the Application for the Tax Residence Certificate in UAE:-
For Individual
- Passport copy & Valid Residence Visa Copy (Emirates ID)
- Certified Tenancy Contract for Proof of Residence
- Bank Statement for at least 6 months (for the year which Tax Residence Certificate is required)
- Source of income/ Salary Certificate
- Exit & Entry Report – Immigration Report for stating the duration.
For the Companies
- Valid Trade License Copy
- Company Documents such as Articles of Association, Incorporation Certificate, Memorandum of Association, etc.
- Company Owners/Partners/ Director Passport, Residence Visa & Emirates ID copy
- Audited Financial Account Statements and Audit Report of the company.
- Bank Statement for at least 6 months.
- Tenancy Contract of Office Space to state the proof of residence.
The validity of the Tax Residence Certificate: The Tax Residence Certificate in UAE is valid for One Year from the Date of Issuance
Setup a company in UAE and Save Tax
Key Business Benefits for the Investor
There are two main business jurisdictions in UAE to set up a company in UAE. It is the mainland and the Free Zone. Depending on the Emirate, the Department of Economic Development is the issuing authority for the Trade License in UAE. The companies in the Mainland will adhere to the rules and regulations of the DED. Similarly, the respective Free Zone in UAE is the licensing authority for the Free Zone Company registered in UAE. There are numerous benefits for foreign investors in setting up a company in the Free Zone.
For High-Net worth Businessmen having a company at the Dubai Airport Free Zone is beneficial due to many factors. The proximity to the airport and sophisticated office space, faster processing of company documents, make the Dubai Airport Free Zone an ideal Free Zone. To know more about the Exclusive Company Formation Packages in Dubai Airport Free Zone, contact us now!
Explore: DAFZA Company Formation Packages
Long Term Residence by Investment of AED 2 Million – Gold Card Visa
The UAE Government is issuing a 10 Year Long Term Residence Visa for investors who purchase a property worth AED 2 Million. Also, there are other pathways to get a Golden Visa in UAE such as via business investment, Bank Fixed Deposit, Highly Skilled Workers – AED 30,000 or above basic monthly salary, PhD Holders, Creative Professionals, Healthcare staff, etc.
- There are Certain Criteria to be met to qualify for the Residence Visa through Property Purchase in UAE such as:
- The Property Value must be AED 2Million or More (Based on Purchase Price on Title Deed).
- The Property must be completed and liveable. The property can be shared by husband and wife, or if it is business partners or relatives, each must have an individual share of AED 2million to qualify for the golden visa.
- The property can be on a loan or mortgage from the banks or through financial institutions.
- There is no minimum down payment requirement to secure a property worth AED 2 Million.
To know more details about the various criteria for each Property Visa, read: How to Obtain Residence Visa through Property Purchase
Our Customised Packages for High Networth Individuals (HNI)
UAE is a favorite choice for High Net Worth Individuals. The extravagant lifestyle, world-class infrastructure facilities, enormous business opportunities make UAE a major trade hub of the world. UAE has a robust network of Banking Services with a host of UAE Banks and International Banks offering a variety of banking services to the business investors.
Aurion will coordinate with all major banks in the UAE and assist you in the Corporate Bank Account Opening. Each Bank in UAE offer specific Banking solutions for the investors, our team of experts will guide you to the right bank by assessing your business profile, investments, nature of the business, and business requirements. We are associated with all major UAE Banks – Mashreq, RAK Bank, FAB, ADIB, and Emirates NBD.
Talk to our expert Business Consultants, to know more about Corporate Bank Account Opening in UAE.
There are few things to be kept in mind, most of the Caribbean ‘Citizenship by investment’ programs, the real estate is not completely owned by the individual investor. It would be a timesharing scheme where several joint owners have the right to use a property as a holiday home.
The opportunity to resell to a new buyer in the island nation would be mostly through the location of a new buyer who’s also intending to invest in the citizenship by investment program. Citizenship by investment in most of the European island nations follows a Multi-tier program. The investor has to make several types of investments to qualify for Citizenship.
So, when you assess all the options of ‘Citizenship by Investment’ UAE stands at a lucrative position due to the relatively low-cost investments and receiving enormous business benefits, tax savings, and world-class infrastructure. Aurion is associated with the Dual-Citizenship Programs of Cyprus, Commonwealth of Dominica, and St. Kitts & Nevis to facilitate investment opportunities for High Net Worth Individuals.
To know more please read: Second Passport & Dual Citizenship for HNIs
Open an Over Seas Company in Mauritius – Mauritius Global Business Company (GBC)
Setting up a Mauritius Global Business Company is a preferred choice for High Net Worth Individuals to save tax in their home country. The GBC Company provides a gateway to become a resident of Mauritius. Hence, company can apply for the Tax Residence Certificate for the company/individual to save taxes for revenue gained outside your home country.
The Mauritius Global Business company is considered as a resident entity and is liable to pay tax in Mauritius over its global earnings. (3 % tax, compared to 15% for other resident company).
Setting up a Mauritius Global Business Company will make you eligible to apply for a corporate bank account from the robust and secured networks of Banks. The Banks in Mauritius comply with international guidelines of banking operations and conduct due diligence at all stages of account opening, transactions, account management, and more.
Contact Us to know more about Company Formation, Tax Saving in UAE and Bank Account in Mauritius.
