Question Leaving Dubai

[karishi]

I heard from my lawyer that now you can get tax certificate for any country if you spend 90 days in Dubai and have long term rental agreement.

You can probably get it, but if your country doesn't have a double taxation treaty with UAE, it's garbage.

 

[Konstanz]

You can probably get it, but if your country doesn't have a double taxation treaty with UAE, it's garbage.

It's just an additional document to prove tax residence.
For example, Andorra, Monaco (because of small size of country) almost don't have double tax treaties with any countries, but residents are still able to prove tax residences there despite lack of double tax treaty.
In case of fraudulent residence, even the double tax treaty won't help you...

 

[zzzzzz]

You can probably get it, but if your country doesn't have a double taxation treaty with UAE, it's garbage.

Three months ago it was not possible to get it (EU country with DTA written for UAE nationals only) and the person spent more than 183 days in UAE.
Basically it doesn't matter what lawyers say, you can check at the source if you're eligible or not with starting the procedure here: Issuance of Tax Residency Certificate (TRC)

 

[Konstanz]

Three months ago it was not possible to get it (EU country with DTA written for UAE nationals only) and the person spent more than 183 days in UAE.
Basically it doesn't matter what lawyers say, you can check at the source if you're eligible or not with starting the procedure here: Issuance of Tax Residency Certificate (TRC)

He said you can get it from 1st of March this year. So, it's new changes
He said if you spend over 183 days in UAE, you don't need rental agreement.

 

[zzzzzz]

It's just an additional document to prove tax residence.
For example, Andorra, Monaco (because of small size of country) almost don't have double tax treaties with any countries, but residents are still able to prove tax residences there despite lack of double tax treaty.
In case of fraudulent residence, even the double tax treaty won't help you...

True. I know a person who was working in UAE (but was still resident in home country) and taxman in home country wants to see TRC, but that person cannot get TRC as DTA is written only for UAE nationals. Yes, crazy.

 

[karishi]

True. I know a person who was working in UAE (but was still resident in home country) and taxman in home country wants to see TRC, but that person cannot get TRC as DTA is written only for UAE nationals. Yes, crazy.

It's not crazy, it's just that leaving your country is the first mandatory step before doing anything. And leaving your country means taking your family with you.
An example: a soccer player went to play in the UAE for 3 years leaving his familiy in a EU country where he was resident, he moved residency to dubai, stayed most of the time in Dubai and when he came back the tax authority claimed that he was still considered resident in that country as his family never moved and thus it's center of interesr was italy especially since the UAE has no tax. Litigation is ongoing.
A TRC is especially useful when you go back to your country and move money into your home country, to prove your residency in the UAE, but the main thing you have to prove is that you weren't triggering residence in your home country. Exiting properly is fundamental.

 

[Konstanz]

Yes, leaving country properly is most important thing. Your family kids, wife cannot live in home country.

 

[zzzzzz]

It's not crazy, it's just that leaving your country is the first mandatory step before doing anything. And leaving your country means taking your family with you.
An example: a soccer player went to play in the UAE for 3 years leaving his familiy in a EU country where he was resident, he moved residency to dubai, stayed most of the time in Dubai and when he came back the tax authority claimed that he was still considered resident in that country as his family never moved and thus it's center of interesr was italy especially since the UAE has no tax. Litigation is ongoing.
A TRC is especially useful when you go back to your country and move money into your home country, to prove your residency in the UAE, but the main thing you have to prove is that you weren't triggering residence in your home country. Exiting properly is fundamental.

In that case, person was without real estate or family in country of citizenship, but employed in UAE. For that year it was considered tax resident at home as no TRC = no tax non-residency at home. That is called nonsense, as home country that signed DTA for UAE nationals only, requests mandatory TRC for UAE resident (that you can't get it).

Tax exile is a different beast, you already know what you want to achieve, have wealth or high income and you can plan your exit properly before moving abroad.

 

[karishi]

In that case, person was without real estate or family in country of citizenship, but employed in UAE. For that year it was considered tax resident at home as no TRC = no tax non-residency at home. That is called nonsense, as home country that signed DTA for UAE nationals only, requests mandatory TRC for UAE resident (that you can't get it).

Tax exile is a different beast, you already know what you want to achieve, have wealth or high income and you can plan your exit properly before moving abroad.

Again, this is correct behavior of the tax authority, there are rules and you must know the rules. Basically your friend did two things wrong:
1) didn't exit his country properly -> every country has a different process but you must flag yourself as non resident, losing some rights, like free healthcare
2) didn't check DTA between his country and UAE
Since he didn't do number 1, even with a TRC the tax authority could potentially say that you were still resident in the country and thus you have to pay taxes. Usually under a certain threshold, tax authorities don't proceed, but that varies by country,