UAE Tax Residency Certificates for Companies
A company-focused guide to UAE Tax Residency Certificates: why one may be needed, the eligibility period, the documents required and the role of effective management.
PB First
· 2 min read
Why Does A UAE Company Need A UAE Tax Residency Certificate?
A Company needs a UAE tax residence certificate if it wants to benefit from the double tax treaty rates if they are lower than the foreign domestic tax rates or if it wants to benefit from double tax treaty tax dispute resolution procedures. This applies to related and arm’s length transactions.
Are You Elegible To Apply For A Tax Residency Certificate? To get a TRC from the UAE Federal Tax Authority, you will need to demonstrate to the FTA that youyour
company is established in and operates from the UAE. You will have to convince the FTA that the UAE is your POEM; Place Of Effective Management. When aplying the FTA will call for all or most of the following documents or confirmations:
Mandatory Very Strongly Optional Documents Items Recommended Supporting Items POEM Confirmation X
Trade Licence X
Memorandum of Association X
Audited Financial Statement X Office Agreement X
Last 6 Months’ Bank Statements X
Minutes of Board Meetings X
Ammendments to MOA X POEM Statement
Recently, the FTA have increasingly requested us to supply a comprehensive statment confirming the POEM is in the UAE. Here at PB First, we have developed a detailed questionanaire designed to
pinpoint POEM. For example, will your POEM be affected by Director’s decisions reserved to shareholders? Using detailed responses to questions such as this, we then draft POEM statements. If you want to obtain your TRC at the first attempt, please get in touch with PB First