Trade relations between countries are currently being strengthened by economic activity in the UAE, but this also complicates because of the two tax systems. As a result, companies are tackling the problem of double taxation. Companies, operating in the UAE may benefit from the avoidance of double taxation through Double Taxation Agreements (“DTA”) of the government by obtaining a Tax Residence Certificate (“TRC”) issued by the Federal Tax Authority.
In order to benefit from a Double Taxation Agreement a person or company generally requires to provide a Tax Residency Certificate to prove that the person is resident in another country and subject to tax in that country. The Tax Residency Certificate is a certificate issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income to which the UAE is a signatory.
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The tax residence certificate in Dubai has a one-year validity period from the date of issue. The Tax Residency Certificate, also known as the TRC Dubai, can be used by corporations and individuals. Additional certificate applications can also be filed depending on unique needs. Tax residency certificates are not available to offshore corporations; therefore, they should get a tax exemption certificate. In order to be eligible to apply for a TRC, the company must have been established for a period of at least one year. Financial accounts must be audited or prepared by an accredited audit firm and attached with other required documents to the application. The report must be certified and stamped by the audit firm. The audited financial report to be attached to the application must cover the year for which the certificate is requested. If the certificate is requested for the present year, the audit report must be covering the past year.
Parsh can help you obtain your Tax Residency Certificate (TRC) in the UAE in a timely and efficient manner. The strain of taxation can be avoided with the tax residence certificate in Dubai and the added benefit of a double taxation treaty to follow. A Tax Residency Certificate is available to any company operating on the mainland or in a free zone which has been operating in the country for at least a year. We will assist with professional tax advice and guidance for your company’s governance in accordance with the tax rules. Any services relating to the Tax Residency Certificate in the UAE are welcomed by Parsh. Our knowledgeable staff will make your job easier by getting the relevant documents and certifications to finish the TRC procedure on time.
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