Tax resident status in the UAE
Receive income tax-free, use international treaties to avoid double taxation, keep personal information and asset ownership confidential
UAE legislation acts as an effective and reliable tool for optimizing taxes and international business. It works extremely well for both individuals and companies once the basic requirements to qualify are met. UAE tax residency is available to anyone in any country and has no adverse legal consquences.
UAE tax residency opens up a wide range of opportunities for business
Application of treaties for avoiding double taxation
Application of preferential tax rates on certain types of income under agreements between the UAE and other countries
Protection against automatic exchange of tax information
Maintaining the confidentiality of information on accounts opened with banks and financial institutions in the UAE and abroad
Concealment of information about owners and assets
Protection of information on ownership of real estate and assets based on legitimate mechanisms provided under UAE law
Earning income worldwide without paying taxes
Profits derived from international activities of legal entities and individuals are not taxed in the Emirates and can be freely withdrawn
Withdrawal of dividends without tax deduction
The distribution between shareholders of the aggregate income received from global sources is not taxable in the UAE
Business command and control center confirmation
Using tax resident status to ensure adequate compliance with requirements of the UAE’s Economic Substance Regulations (ESR)
Conditions for obtaining tax resident status in the United Arab Emirates
Residing in the UAE
To obtain tax resident status you need to reside in the UAE for more than 180 days a year
Resident visa
Individuals, including shareholders or company management, are required to obtain a resident visa
Residence address
For an individual, confirmation of employment and actual place of residence in the UAE are required
Control center
A legal entity requires a physical office as well as administrative staff
Source of income
Permanent income derived from a source in the UAE must be proven
Age of company
A legal entity must be have been incorporated for at least one year
Stages of registration for UAE tax resident status
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Registration of a resident visa
Non-investment in nature, according to OECD classification, and achieved by incorporating an onshore company in the UAE and passing simple immigration procedures
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Proof of residential address
Prove actual presence in the UAE by providing a lease contract or certificate of ownership, utility bills, etc.
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Proof of income in the UAE
Open a bank account protected from exchange of tax information to receive funds as salaries, dividends, etc.
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Provide documents confirming status
After 5-6 months, SORP Group specialists will prepare the required package of documents and issue a UAE tax resident certificate based on regular transactions on a personal bank account.
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Confirmation of the age of the legal entity
An onshore company may apply for tax resident status 12 months after incorporation, or when a company is acquired that has existed for more than a year.
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Confirmation of feasibile economic presence
Having a corporate bank account in the UAE and conducting regular transactions for at least 6 months, which must be confirmed by a statement from a financial institution.
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Audit report
Preparation of audit reports for the last financial reporting year by a company incorporated in the Emirates, for subsequent submission to the Ministry of Finance
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Obtaining a tax resident certificate
After one year of trading activity and regular transactions against the corporate bank account, you will need to prepare a package of documents for applying for a certificate of UAE tax residency
SORP solutions for registration of tax residency status in the UAE
Incorporation and licensing
We choose a business license and form of legal entity, and incorporate a local or free zone company
Registration of residency
Guards against automatic exchange of tax information when performing UAE banking operations
Opening bank accounts
Use our close cooperation with UAE banks, understanding of procedures and assistance in passing KYC
How to confirm your UAE tax resident status
For a legal entity
In order to confirm personal status as a tax resident, the following solutions are available:
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Business Certificate
After registering for VAT, receiving a Tax Registration Number and a business license -
Status of business certificate
With a valid business license and confirmation of the physical location of the company (lease agreement) -
Tax domicile certified by Federal Tax Authority
After a year of successful activity, certified by an audit and an income stream earned in the UAE -
Economic Substance Report: Ministry of Finance
Confirming economic presence in the UAE, a management decision center, business address and actively trading -
Tax advisor certificate
After opening a current account and concluding a service agreement with a Tax Advisory consultancy
SORP Group comprehensive solutions in the field of tax residency
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International tax planning
Individual solutions to improve the efficiency of all tax optimization schemes for international business based on UAE legislation and our expertise from successful cases
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PRO support
We represent your interests with all government agencies, issue resident visas to partners, staff and their families, and renew permits, licenses and registrations
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Obtaining tax domicile
Obtaining resident visas that are not investment in nature, with the provision of all procedures needed to obtain a tax domicile certificate in the UAE
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Confirmation of economic presence in the UAE
We prove that operational activities occur at place of incorporation, the presence of a control center in the UAE, and that tax is paid in the UAE
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Nominee service tools
We will provide a limited nominee director and shareholder to enable transfer pricing and conceal details of the true company beneficiaries
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Confirmation of the center of vital interests in the UAE
We confirm the existence of an active UAE company and identify the main business processes that occur at its place of incorporation
SORP provides a full range of services for incorporation and business management
Get UAE tax residency!
SORP Group specialists will help you build optimal tax schemes and create conditions for obtaining UAE tax resident status. If you do not know how to get a tax residency certificate in the UAE, please contact us. We will assist you at all stages of registration of the tax domicile.
Take advantage of the unique benefits of UAE legislation now!