Tax Residency in the UAE

The United Arab Emirates (UAE) is known for its stable economy, solid infrastructure, an array of foreign investment and business opportunities, and no personal and corporate income tax structures.

Simultaneously, people living in the country are content with the no-frills tax residency procedures. To get a tax residency certificate, which is basically a document confirming tax residency in the UAE, you must have the following:

List of documents individuals would need:

1. A copy of their passport;

2. UAE residence visa copy;

3. ID card copy;

4. A rental agreement, which is a purchase or rental contract for living in the UAE. For a tax residency in the UAE, an individual should have a place of dwelling in the UAE that’s registered in their name;

5. Last six months’ bank statements. The statement should have been issued by a bank that maintains the individual’s account. The account could be a business account or a personal account where the holder’s income or salary get reflected.

6. Salary certificate addressing the Ministry of Finance.

7. A certificate issued by the General Directorate of Foreign Affairs and Residency denoting the amount of time the resident has spent in the UAE. To become eligible for putting in a tax residency in the UAE application, the applicant should have lived in the country for 183 days or more in a given year. As per the UAE legislation, if this 183-day requirement has not been fulfilled, the individual cannot legally apply for a UAE tax residency. The Emirate immigration department issues this certificate, which reflects an individual’s entry and exit into the country.

8. Signed statement; contributions paid.

Documents to be furnished by legal entities:

1. The company should have been functioning for at least a year;
2. Constituent documents;
3. Company license;
4. Lease agreement;
5. Copies of the company director’s passport, residency and ID card;
6. Company account bank statements for the last six months.
7. The company’s audit report;
8. Signed statement; contributions paid.

Having thoroughly examined the documents required for obtaining a tax residency, it’s recommended these important documents are made available to the right person as quickly as possible since that would increase one’s chances of getting approved for the same.

Housing Availability

This could denote property availability. In this scenario, a confirming document would be issued by UAE’s Ministry of Finance on rental housing or housing availability – a long-term lease document would be needed; the lease period should at least be a year.

Economic Interest

It basically denotes owning and managing a business in the UAE and also generating income on the country’s shores. In other words, it means receiving payment, wages, and dividend receipts from the company’s owner. The visas issued by UAE are basically of two types: working and investor visa. An individual who gets either of these visas can open a UAE bank account to receive their salary.

If the visa is of the investor type, a salary certificate would be needed for opening a bank account. A work visa would then be issued by the company’s general manager.

If you would like to get rid of taxes, preparing annual income reports, then tax residency in the UAE is definitely for you!
Please contact our specialists to get more information on applying for tax residency in the UAE.