A tax residency certificate issued for domestic tax purposes in the UAE plays an important role in verifying an individual's tax status and obligations within the country. The Federal Tax Authority (FTA) oversees the issuance of these certificates to natural persons to determine tax residency for local tax regulations and benefits.
The tax residency verification for local tax obligations certifies individuals' statuses which are determined by the number of days they spend in the UAE during a particular financial cycle. It lets individuals to use domestic tax exemptions and allowances they are entitled to as UAE tax residents. Local authorities also accept these certificates as proof of tax residency for verification of tax obligations for residents.
Any natural person can apply for a Tax Residency Certificate Domestic UAE from the FTA provided they meet one of the following criteria for days spent in the UAE during the requested financial year:
| Days Spent in UAE | Residency Status | Eligible to Apply? |
|---|---|---|
| 183 days or more | Considered a tax resident | Yes |
| Less than 183 days but 90 days or more | May still qualify subject to other criteria | Yes |
| Less than 90 days | Considered non-resident but can qualify based on financial and personal interests tied to the UAE | Yes |
The financial year that the applicant is requesting should be over and he or she should have relevant documents to show their residence and citizenship status in the UAE according to the FTA criteria.
The acquisition of the UAE tax residency certificate for domestic taxation in the United Arab Emirates should fall in line with the steps mentioned:
With the online filing EMARATAX, applicants can quickly and easily start, follow, and fulfill their tax residency certificate application from start to finish digitally on the Internet.
The type of documents required to apply for a tax residency certificate for domestic purposes in the UAE depends on the period of stay in the country as follows:
Applicants are expected to submit all compliant documents in respect of their stay duration to obtain a tax residency certificate for domestic purposes in the UAE.
In summing up, the acceptance of the valid Tax Residency Certificate Domestic UAE by the FTA is a verification of the status of the individual's residency within UAE. It aids residents and authorities in correctly declaring their domestic tax obligations in the UAE, and further allows domestic tax benefits for UAE tax residents by offering them subsidies and exemptions available to only the tax residents of the UAE. Filing a tax return can be an overwhelming task, which is why the help of Corporate tax UAE, can be a great start before an applicant proceeds with the requirements and process of obtaining a certificate of tax residency for domestic purposes in the UAE.
For a comprehensive guide on changing your tax residency, check out our detailed article on How to Change Your Tax Residency to Dubai.
The UAE tax residency certificate for domestic purposes is proof of an individual's tax residency status in the UAE, which is utilized solely for local taxation. It serves to assess the duty of tax filing of citizens and eligibility for tax exemptions.
Individuals who meet any of the following criteria are eligible to apply for a tax residency certificate for domestic taxation in the UAE:
Documents like passport, Emirates ID, entry/exit dates and proof of residence like utility bills or rental contract.
It establishes their tax residency in the UAE, enabling access to exemptions and clarifying tax filing obligations.
Yes, certificates issued by the FTA are accepted as proof of tax residency by local authorities.
Certificates are renewed every year by filling out an online form having an option to submit additional files if necessary.
Mostafa is a seasoned Tax Consultant with over 5 years years of experience gained in diverse taxations matters. He has vast expertise in settling tax disputes with the Federal Tax Authority and handling of tax procedures in compliance with tax laws. He is adept in investigating underlying tax intricacies and offering expert tax advisory. He is also well-versed in conducting tax analysis’s and negotiations with the Tax Regulators, upon tax preparation and filing. Mostafa specializes in the areas of Tax law, Auditing, Accounting and Banking law.