How to get tax residency in the UAE

Why is tax residency in the UAE considered so attractive?  

The UAE is a country with a stable economy, infrastructural development, a wide range of opportunities for foreign business and investment, the absence of corporate income tax and personal income tax.

At the same time, everyone in the UAE is satisfied with the simple tax residency procedures. Let's take a look at what is needed in order to receive a tax residency certificate - a document that confirms the tax residency in the UAE.

List of documents required for individuals:

1) A copy of the passport;

2) ID card copy;

3) A copy of the UAE residence visa;

4) A rental contract is a rental or purchase contract for accommodation in the UAE. To obtain tax residency, a person must have a living space registered in his name;

5) Bank statement for the last 6 months. The bank statement must be issued by the bank where the person has an account, where the salary or income is received.

6) Certificate of salary addressed to the Ministry of Finance.

7) A certificate from the General Directorate of Foreign Affairs and Residency indicating the number of days spent by the resident in the UAE. The applicant must reside in the UAE for at least 183 days a year in order to be able to apply for tax residency. 183 days is the minimum number of days that should be spent in the UAE during the year in order to have legal grounds to apply for tax residency, according to the UAE legislation. The certificate is issued by the immigration of the Emirate. Reflects the entry/exit to the UAE.

8) Contributions paid; signed statement.

List of documents required for legal entities:

• 1) The company must be older than one year;
• 2) Company license;
• 3) Constituent documents;
• 4) Lease Agreement;
• 5) A copy of the passport, ID-card and residency of the director of the company;
• 6) Bank statement of the company’s account for the last 6 months.
• 7) The audit report of the company;
• 8) Contributions paid; signed statement.

Having examined in details what is required to obtain a tax residency, it is recommended to submit the documents to obtain the status of a tax resident of the UAE to an individual as this increases the chances of approval.

Availability of housing

This may be the availability of a property. In this case, the Ministry of Finance issues a confirming document on the availability of housing or rental housing - a lease document will be required, the lease must be long-term (a year and above).

Economic interest

Having your own business and operating in the country as well as generating income from the country. That is, receiving wages, payment and receipt of dividends by the owner of the company. There are two types of visas issued, they include investor and working visa. In both cases, the person has the right to open a bank account and receive a salary thereafter. In case the visa is that of an investor, a salary certificate will be required to open an account. Then, a work visa is issued by the general manager of the company.

As you can see, the procedure is clearly stipulated by law and gives everyone the opportunity to become a tax resident of the UAE.