Tax residency certificates — the conditions

A tax residency certificate is issued by the Federal Tax Authority and evidences that a person is tax resident in the UAE for the purposes of a double tax treaty. For individuals the primary test is 183 days of physical presence in the UAE in a twelve-month period. An alternative route applies at 90 days for UAE nationals, GCC nationals and holders of a UAE residence permit who also have a permanent place of residence here or carry on employment or business in the UAE. For companies, the entity generally needs to have been established for at least a year with audited financial statements.

The distinction between residence and tax residence is where expensive mistakes happen. Holding a UAE residence visa while spending most of the year elsewhere does not make you UAE tax resident, and it will not persuade the country you actually live in. That country applies its own residence tests — its own day counts, its own ties, its own centre-of-vital-interests analysis — and a UAE visa is not an answer to any of them. The certificate is the document that supports a treaty position, and obtaining it requires actually meeting the conditions rather than merely holding the visa.

Thresholds and deadlines

Individual — primary

183 days of physical presence in a 12-month period

Individual — alternative

90 days plus permanent home, employment or business

Company

Generally established at least a year, with audited accounts

Issued by

The Federal Tax Authority, through EmaraTax

Scope

Per treaty partner and per financial year

Evidence

Entry and exit report, tenancy, bank statements, salary or licence

1. Count the days properlyThe entry and exit report from the immigration authority is the evidence, and it is not always what people expect.
2. Establish which limb you satisfy183 days, or 90 days with the additional conditions. They require different evidence.
3. Assemble the supporting documentsTenancy, bank statements, salary certificate or trade licence, passport and Emirates ID.
4. Apply through EmaraTax naming the treaty partnerCertificates are issued per country and per year, so multiple claims mean multiple applications.
5. Check the other country's test as wellA UAE certificate does not stop another country asserting residence under its own rules.

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