Obtaining the status of a tax resident in the UAE

The status of the tax resident confirms that the person/company has the status of a tax resident in the United Arab Emirates from the point of view of the authorities of this jurisdiction.

In order to obtain a tax residency, it is necessary to meet the requirements/ comply with certain set of rules, depending on the state.

At the same time, having received the status of tax resident in the UAE, the tax authorities of other countries do not always guarantee the recognition of your full tax residency in the Emirates. Fulfilment of all the rules and conditions for obtaining tax residency in the UAE also does not at all ensure the recognition of full tax residence in another jurisdiction.

Companies and individuals can obtain a certificate of tax resident of the UAE, but according to different criteria. In case of individual, he/she need to have residence permit in the United Arab Emirates and place of residence in order to obtain the foregoing certificate.

In case the company is the recipient of the certificate, then it should not be offshore one, and the director of such company should be the resident of the UAE, although the director may be a foreigner with the residence permit in the UAE. Moreover, it is necessary to meet additional criteria, which are determined individually.

In order to find out the details and exact criteria for your company, please, apply for consultation to the lawyers of Law&Trust International. Consultations are possible by phone, through chat or during personal conversation.

Information regarding tax rates in the UAE for individuals and companies

Persons recognized as residents of the UAE or domiciled in a given jurisdiction are exempt from all types of taxes on personal income other than tax on income from real estate.

Tax on income from real estate in the form of rental income is equal to five percent and (without separate tax declarations) is charged with payments for utility services.

Similar rules apply to companies. Companies located in the United Arab Emirates are exempted from corporate and other taxes, except for VAT at a rate of five percent that will enter into force in 2018.

What is the period of validity of the certificate of tax resident in the UAE?

The above certificate has the validity period of one year from the date of its issue.

The process of obtaining certificate of a tax resident of the UAE

Documents for submitting application for obtaining certificate of tax resident in the UAE should be prepared properly, and it is necessary to fill in certain forms. The very process of obtaining the certificate involves several important steps. Therefore, we recommend contacting our company. Our lawyers will provide you with comprehensive support in the procedure for obtaining the certificate.