The new FTA guide called Tax Procedures Guide: Tax Resident and Tax Residency Certificate provides general guidance on the UAE corporate tax and tax residency rules.
The Guide gives an overview of the following issues for businesses and individuals:
- how to determine whether they are resident persons for corporate tax purposes;
- how to determine whether they are tax residents in the UAE under the laws of their home country;
- how to determine whether they are tax residents in the UAE under the Double Taxation Agreements (DTA);
- how to obtain a tax residency certificate from the FTA.
The Guide describes the scheme of obtaining the certificate step-by-step. It also provides lists of documents for an application, including a certificate for DTA purposes.
The appendix of the Guide contains a sample tax residency certificate for DTA and a table with residency criteria for individuals and companies.
The following are some key points from the Guide:
- Under corporate tax, taxable entities and individuals can be classified as resident or non-resident.
- A tax residency certificate is required to confir...