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Who needs Dubai Tax Residence Certificate ?

troubled soul

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Aug 23, 2020
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I saw so many people asking and confuse regarding the Dubai Tax Residence certificate.
I started thread to gather information about these certificate.

First Official site are below

https://www.mof.gov.ae/en/mservices/Individual/VtAx/Pages/default.aspx

You can check eligibility and condition for that. It is official site . So there will be no confusion.

Many people on this forum too much worry about this certificate. In reality there will be no need of this certificate. (My personal opinion)
as When you open bank account or brokerage account , There will be no need of this certificate. (Residential visa + Any utility bill will be sufficient )

Now I want to know who needs this certificate. Please do clarify .
What type of people need this certificate ?

Thanks
 
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What type of people need this certificate ?

As a general rule, in certain cases, a tax residency certificate might be asked by tax authorities in other countries.

For example, when there is some kind of tax investigation as regards a particular person who claims he is a UAE tax resident. Or if a foreign company is paying dividends/royalties/interest and wishes to apply DTT provisions for reduced withholding tax rate.

Only a small number of clients wish to obtain a tax residency certificate. In order to prove residence, Emirates ID, rent agreement, utility bill, business (economic interest) and other proves (such as invoices from local doctors, etc.) are sufficient. On the other hand it of course depends on the situation.

For tax residency certificate and collection of other required documents, a person has to pay the application fee, so it is usually done only if there is a legitimate/important request from some other country.
 
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True, I think Most of people on this forum asking for Tax certificate, In practical experience It does not required.
Talking about the TRC for individuals for people nationals of country where the law or case laws which set a precedent force you to prove an other tax residence :

it depends if you want a foolproof solution, which will let you safe against any audit, or a solution that works only if you are undetected, but then whats the point of setting up.
Some countries will recall you tax resident in case of a residence challenge when you are not able to show an annual declaration (even a 0) (in Dubai there is none) or a TRC from an other country, proving that you moved your tax residence somewhere, even if this criteria might not appear in the texts. (even if you do not trigger any other criteria of residence for your country and did not put a foot there)
 
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Many people on this forum too much worry about this certificate. In reality there will be no need of this certificate. (My personal opinion)
as When you open bank account or brokerage account , There will be no need of this certificate. (Residential visa + Any utility bill will be sufficient )

What if a foreign bank asks you where are you tax resident and you answer UAE...
Can the Bank ask you for passport copy (to see if you where there for 183 days) of this certificate as a proof?