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Tax residency certificate in UAE - 183 days or 183 days in the same fiscal year?

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Verbatim

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Apr 28, 2021
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#1
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I am getting conflicting info from UAE expats - some say you can obtain the tax residency certificate after 183 days in the country in any year, others say it has to be 183 days in the same fiscal year. What is the correct answer?
 
#2
  • The applicant must have been working in the UAE for at least one year.
  • The applicant must be currently working, as non-working individuals are not allowed to apply for this certificate
It is an official Website of Government . Hope this help
https://www.mof.gov.ae/en/pages/FAQ.aspx


What are the requirements and fees for obtaining the Tax Domicile Certificate?​

For Companies:
  1. A copy of the trade license and partners' attachment.
  2. Establishment contract certified by official authorities (if it is not a Sole Company).
  3. A copy of the company’s owners/partners/directors' passports
  4. A copy of the company’s owners/partners/directors' IDs
  5. A copy of the company’s owners/partners/directors' permits of residence
  6. A certified copy of the audited financial accounts
  7. A validated 6-month bank statement
  8. A certified copy of the lease agreement.
  9. Tax forms (if any) from the country in which the certificate is to be submitted.
  10. For issuing the certificate: Pay 10,000 Dirhams + 3 Dirhams, paid through e-Dirham Card
Offshore companies are not allowed to apply to the service because they are not listed in the Double Taxation Avoidance agreements.
For Individuals:
To apply for a tax domicile certificate:
  • The applicant must have been working in the UAE for at least one year.
  • The applicant must be currently working, as non-working individuals are not allowed to apply for this certificate
  1. Copy of the passport.
  2. Copy of valid Residential ID.
  3. A certified copy of (residential) lease agreement.
  4. Source of income/Salary certificate.
  5. A validated 6-month bank statement
  6. A report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has stayed in the UAE.
  7. Tax forms (if any) from the country in which the certificate is to be submitted.
  8. For issuing the certificate: Pay 2,000 Dirhams + 3 Dirhams, paid through e-Dirham Card
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#3
Definition of working is receiving a salary and in practice it's really 6 months.
The quality of your set up also helps especially if your sponsor is a "somebody".
 
#7
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#8
azb1 said:
  • The applicant must have been working in the UAE for at least one year.
  • The applicant must be currently working, as non-working individuals are not allowed to apply for this certificate
It is an official Website of Government . Hope this help
https://www.mof.gov.ae/en/pages/FAQ.aspx
Click to expand...
some people actually living in Dubai tell me you get it after 6 months, others say 6 months in the same fiscal year, others say after 1 year of living there...I imagine its officially in 1 year but in practice in 6 months...
 
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#10
Verbatim said:
some people actually living in Dubai tell me you get it after 6 months, others say 6 months in the same fiscal year, others say after 1 year of living there...I imagine its officially in 1 year but in practice in 6 months...
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If something works Today in Dubai, The very next day It would not work.
It is better to follow Official Website Guidelines.

Thanks
 
#12
The whole UAE economy is based on the tax free elements.

To take that away would move people away. I don't see it happening for a long time. Plus the law states that your company has a tax free period of 50 years so if you incorporate today you have 50 years.
 
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#13
CaptK said:
The whole UAE economy is based on the tax free elements.

To take that away would move people away. I don't see it happening for a long time. Plus the law states that your company has a tax free period of 50 years so if you incorporate today you have 50 years.
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True When they impose a tax, the UAE economy especially Dubai Economy will finish. But I do not think that they will ever do that. They just increase VAT or Impose a tax on Local company earnings.
 
#14
CaptK said:
To get tax certificate you have to demonstrate funds coming from the business account to the personal account on a regular basis.
Click to expand...
If I 1) incorporate a company in UAE, 2) move there in order to get the residency, 3) open both personal and corporate accounts - how much should I transfer from the corporate to the personal account on the regular basis? Is there some minimum? And what about taxation in this case? Logically, I will need to pay tax in my home country, thus I am not a resident in the tax-free country.
 
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#15
spacely said:
If I 1) incorporate a company in UAE, 2) move there in order to get the residency, 3) open both personal and corporate accounts - how much should I transfer from the corporate to the personal account on the regular basis? Is there some minimum? And what about taxation in this case? Logically, I will need to pay tax in my home country, thus I am not a resident in the tax-free country.
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The more the better. Ideally AED30K salary but anything above AED10K per month is deemed reasonable.
 
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#19
AED 10K is about $2700 bare in mind you can recirculate the funds as their is no audit.

As crazy as it sounds cab drivers earn about $800 month, It's all relative really. Downtown Dubai or upmarket Dubai is expensive. But if you live 30 mins from downtown then everything is much cheaper.
 
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#20
Verbatim said:
would that be enough to cover living expenses in Dubai? or in other Emirates only?
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If you're single, that amount will cover a decent lifestyle in any Emirate. Obviously, if you choose Ajman, Sharjah or Al-Ain, you will get more for your money, but not necessarily 'value'; it's just that they are way cheaper (for $250k you can purchase a top-of-the-heap 3 bed condo right on the Corniche beach area in Ajman, whereas in Dubai's prime spots you'll be lucky to get a studio).

As @CaptK mentioned, if you move 25-30 mins out of those prime spots, you'll find interesting offers in Dubai, too (less so in Abu Dhabi), for example, 3-4 bed townhouses in Akoya for the same aforementioned $250k. It's all a matter of choice, really, depending on your marital/family situation, what your plans are (eg, education is very (outrageously) expensive for expats' children), and whether you're comfortable with the place in general or not.

Hope this helps.

NVO
 
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