Amazing development for Indian expats in the UAE, last November, the government of UAE announced legislation to clearly determine Tax Residency procedures and definitions for natural and legal persons based in the UAE.
Surprisingly, the UAE has since forever lacked the definition for what it meant to be a Tax Resident until recently. In cases of conflict, courts relied on existing FTA criteria and income tax treaties.
Earlier, for individual taxpayers, it took an annual lease and a 180-day UAE residence to obtain a tax residency certificate. Legal entities such as organizations and companies had to have at least one-year establishment and audited accounts to showcase the same.
UAE Cabinet Decision No. 85 for Tax Residency Certificate 2023
The UAE Cabinet Decision No. 85 of 2022, now effective as on 1st March 2023, supplies domestic definitions and guidelines for determining if an individual or legal entity qualifies as a Tax Resident of the UAE.
Now, the rule for an individual is if an individual has the strongest work, personal and economic relationships and connections in the UAE, then the UAE will be treated as their “place of residence.”
In addition, it specifies that all days or parts of a day when an individual is physically present in the UAE will be counted in determining whether the 183-day or 90-day thresholds are met. Both full and partial days are considered making it easier for expat residents to qualify for “tax residency certificate.”
The individual does not need to own his ‘permanent place of residence’ in the UAE; however, this place must be continuously available to them.
What about Legal Persons falling under the Tax Treaty Clause?
In exceptional situations where Tax Treaty applies as an international agreement, the Tax Treaty shall stay applicable. It is important to consult experts to determine whether your Company falls under this clause or not.
Individuals or companies assessing their tax residency can apply for a tax residency certificate from the tax authority using the procedure outlined in the Resolution. It is already automated on the FTA website. Experienced tax consultants UAE can help you navigate this process with ease.
This certificate is commonly a necessary requirement for UAE residents who wish to obtain tax benefits or other privileges in another jurisdiction under the corresponding tax treaty.
6 Simple Steps to get your Tax Residency Certificate UAE in 90 days
- Register for a Tax Certificate account with the Federal Tax Authority.
- Navigate to your personal account dashboard.
- Select “Create Tax Residency Certificate.”
- Finish the setup process.
- Remit fees upon FTA approval.
- If FTA attestation is needed for a tax form, mail the completed form covering the financial year (applicant covers postage and return fees).
It takes nearly 45 minutes to finish the application. However, before procuring the Tax Residency Certificate, you need to ensure your documents are in order.
The list of documents needed for Tax Residency Certificate UAE varies depending on
- Applicant is a natural person
- Applicant is a legal person
- Applicant is a legal person – Government entity
- Applicant is a natural person spent in the UAE above 183 days
- Applicant is a natural person spent in the UAE less than 183, and equal or more than 90 days
- Applicant is a Juridical person
- Applicant is a Juridical person – Government entity
It is complex to navigate figuring out which documents are needed and in which format, other details and how to go about procuring, consolidating, validating, notarizing and submitting the documents together.
If you find it daunting to navigate this process on your own, you can speak to a certified Tax Consultancy Dubai such as expert tax consultants Dubai at Horizon Biz Consultancy for a free 30 minutes consultation to clear your doubts.
How long does the FTA take to get back after submitting your UAE Tax Residency application online?
- The Federal Trade Authority UAE takes 3 business days from the date the completed application was received
- For hard copy, it takes 7 business days from the date the certificate fees payment is completed
- For applicant tax form FTA attestation it takes 5 working days from the date the completed form is received by the FTA
The global economy’s evolution has made it increasingly necessary for individuals and businesses, especially, expats in UAE, to stay updated with changes in tax regulations and international treaties.
Horizon Biz Consultancy expert Tax Domicile Certificate Consultants Dubai
Leveraging the expertise of Horizon Biz Consultancy for Dubai tax residency matters not only simplifies the process but also keeps you well-informed about the latest developments and best practices.
Hear, our co-founder Ms. Vibha Malik Modi, explain how you can navigate the daunting landscape of obtaining a Tax domicile certificate UAE.
In conclusion, obtaining a Tax Residency Certificate in the UAE in 2023 has never been more streamlined, thanks to the Cabinet decision and the assistance of expert consultants at Horizon Biz Consultancy in Dubai.
You can now easily navigate the complexities of tax residency and ensure hassle-free compliance with local and international regulations.
Leveraging professional guidance from expert trc certificate Dubai advisors, you can confidently secure your tax residency certificate in Dubai and reap the benefits of being a Dubai tax resident.
Reap the benefits of working with an experienced team that closely monitors and understands the nuances of the tax residency certificate application process and provides personalized assistance to ensure a smooth experience.
Rest assured leaving your TRC certificate Dubai application in capable hands and avoiding any potential pitfalls or unnecessary delays.
If you want to know more about Tax Residency Certificate UAE in 2023, experts at Horizon Biz Consultancy can help you through it all. Get in touch with us for a free consultation today.