Dubai Residency for Tax Benefits
You already know that lots of benefits await you as an incorporated company in the UAE, but have you heard about tax residency benefits for efficient tax planning? These benefits specifically apply to those who either live in the UAE for 180 days a year or have operated a company in the UAE for at least for one year. And what are the benefits of this tax residency? Well, you can plan on enjoying the advantages of Double Taxation Agreements, tax incentives, and tax benefits.
The two main tax benefits of having residency in the UAE are:
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0% corporate tax rate
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0% income tax rate
How to Obtain a Tax Residency Certificate in the UAE
Although there are a few ways to obtain a tax residency certificate in the UAE, doing so through company incorporation is the simplest way. Here are five quick steps to getting your tax residency certificate through company formation:
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Choose the business type/area
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Choose a company name
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Apply for your business licence
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Choose office space
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Register your company
Benefits of Obtaining a Tax Residency Certificate
Let’s break down the benefits of a tax residency certificate in two sections.
Tax and Company Benefits
As you already know, one of the most alluring aspects of doing business in Dubai is the benefits for company owners. Those who engage in business in the region and have a company registered in the UAE can enjoy a 0% income and corporate tax, avoid double taxation in more than 100 countries, benefit from a responsible and professional government and receive tax benefits on both imports and exports.
The benefits of obtaining a tax residency certificate go much further than company advantages; having residency in the UAE yourself can lead you to even further benefits:
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Visa-free travel to certain countries
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Access to a UAE bank account
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Access to UAE public services (healthcare, schools, etc.)
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Residency in a country with an international and thriving economy
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Ability to sponsor family members
The business formation regulations and residency requirements in Dubai may vary depending on your specific situation and the jurisdiction in which you choose to register. If you’d like more information, would like to discuss business tax planning strategies or are ready to take the next step and reap all the benefits of tax residency in the UAE, contact us today.
Written by
Adrian Oton
CEO, Europe Emirates Group
