TAX DOMICILE CERTIFICATE SPIKES INTEREST AMONG UAE BUSINESSES

The tax structure of the United Arab Emirates is one of the most favorable in the world. While there is a tax on products imported and a 5% VAT which was lately implemented, the country's corporate and personal income tax rates remain at a very attractive 0%. As a result, entrepreneurs and investors from all over the world are flocking to Dubai and the UAE. Benefiting from the UAE's 0% tax rate, on the other hand, might be a bit of a hassle for foreign businesses that conduct business across the globe. This is especially true if you live in another country for a considerable chunk of the year. A tax domicile certificate is required to establish that you and your business are qualified to be taxed at the UAE rate.

A tax domicile certificate, also known as a tax residency certificate, is proof that the possessor is a UAE resident and therefore entitled to the country's 0% tax rate. The UAE Ministry of Finance has issued it to assist people and enterprises by removing the burden of paying tax in their home country with the use of the double taxation avoidance treaty. A double tax treaty is an agreement between two nations that protects residents and citizens of both countries from paying tax in both countries. Individuals and businesses can both receive tax domicile certificates.

One should have a valid residency permit and stay in the UAE for at least 180 days per year and a UAE bank account with sufficient activity for at least six months to be able to establish significant links with the nation and be eligible for a tax domicile certificate in the UAE.

You must first register an account through online with the UAE Ministry of Finance in order to apply for a tax domicile certificate. After that, you'll need to fill out a tax residence application and acquire all necessary documents. A copy of your passport, residence permit, and bank statements, as well as salary certificates, and any necessary papers from the General Directorate of Residency and Foreigners Affairs, are included. Lastly, you must submit your completed application form as well as any supporting documentation online and pay the required money.

The procedure for obtaining a tax domicile certificate for companies in the UAE is identical to that described above. When applying on behalf of a company, you will need to submit some of the documents listed above, as well as a valid UAE trade license, a copy of your Memorandum of Association, proof of identity for all partners, shareholders, and directors, a copy of your audited accounts, UAE firm's most recent certified audited financial statements or bank statements, and a copy of your audited accounts.

The UAE's policies have been carefully constructed to stimulate business activities while also providing the company with a variety of benefits. Obtaining a tax domicile certificate doesn't

have to be difficult if you have the proper knowledge. However, it does demand a degree of concentration and some prior understanding of the procedure. Outsourcing work at this point is advantageous for businesses because it allows them to save time and money while focusing on their areas of expertise.

Aon Consultants consists of a team of professionals that are enthusiastic about helping budding entrepreneurs and SMEs realize their goals. Our trained specialists with their experience in tax domicile certificate applications oversee the whole procedure for you, ensuring that your application is submitted in time.