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Wednesday, March 08, 2023
Khaleej Times - UAE tax residency certificates: Step-by-step guide, cost to get them
Individuals who spend 183 or more days in the UAE during a year are considered tax residents. They can obtain Tax Residency Certificates (TRCs) and benefit from Double Tax Avoidance Agreements (DTAA) signed by the UAE with a number of countries.
According to the Federal Tax Authority website, it takes about 45 minutes to submit an application. The TRC is valid for one year from the beginning of the financial year selected by the applicant.
The Ministry of Finance recently issued a decision, clarifying rules on determination of tax residency.
For instance, tax residents do not need to own a permanent place of residence, but “such place must be continuously available to them”. It also specifies that all days or parts of a day in which an individual is physically present in the UAE will be counted in determining the 183-day threshold.
Experts have highlighted how the country has a very straightforward domestic tax residency regime. It is designed to ensure that individuals who live and work in the UAE are subject to fair and equitable taxation, said Dariush Soudi, founder of advisory firm Arena Consultancy. He added that TRCs will help ensure that residents of the UAE are not subject to double taxation.Khaleej Times