Tax Residency Certificate UAE: Issuance by the Federal Tax Authority
How a Tax Residency Certificate UAE Supports Double Taxation Avoidance
The Tax Residency Certificate UAE allows both natural and legal persons to benefit from the Double Taxation Avoidance Agreement, to which the U.A.E. is a signatory. This agreement ensures that individuals and businesses are only taxed once. The U.A.E. has double tax avoidance treaties with over 117 countries, providing significant advantages to businesses and investors. In addition, the Tax Residency Certificate UAE enables VAT refunds for businesses in countries with which the U.A.E. has a reciprocal agreement, currently including Bahrain, Germany, Kuwait, Lebanon, and Saudi Arabia.
Previously, the issuance of tax residency certificates was overseen by the Ministry of Finance. The regulatory authority has now shifted to the Federal Tax Authority in line with Cabinet Decision No. 65 of 2020 on Fees for Services provided by the FTA. This change aims to improve efficiency by assigning the service to the FTA, which handles similar functions and can deliver effective results. Applications for the Tax Residency Certificate UAE can now be made through the FTA’s e-Services Portal, streamlining the process by providing applicants with a list of all available requests related to tax certificates. The digital process ensures ease for those registered with the tax system, as all relevant data is accessible on the Portal, allowing for quick and convenient applications.
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