Tax Avoidance Agreements
In today's globalized era, companies aren't limited to a single location; they operate worldwide. Their overall income can come from various sources in different countries. However, each country seeks a portion of this income through taxes. To prevent paying taxes to two countries at once, business professionals enter into agreements known as Double Tax Avoidance Agreements (DTAA).
Advantages Of Opening A Bank Account In The UAE
he UAE tax residency certificate is an official document granted by the Ministry of Finance of the UAE to individuals and businesses. It signifies that the holder is exempt from paying taxes in their second country of permanent residence, given that there exists a signed agreement between the UAE and that specific country. This certificate remains valid for a duration of one year from the date of issue.
For A Legal Entity
To obtain the residency certificate, the company must have been in existence for more than a year. The required documents include:
- Trade License
- Constituent document certified by official authorities (not applicable for sole proprietors)
Lease agreement - Copy of the passport, ID card, and residence of the company director
- Application letter from the company
- Bank statement for the last 6 months
- Certified copy of the audit report on the company’s financial condition
- Organizational structure of the company (not applicable for sole proprietors)
- Tax return of the country where the documents will be submitted
- Fee of AED 10,000 + AED 3 for an e-payment card (E-dirham)
- The processing time for the certificate is one month.