A Free Trade Zone entity in UAE enjoys many tax and business possibilities. For starters, a FTZ company enjoys full exemption from corporate and income tax, 100 percent foreign ownership, free profit repatriation, no exchange restrictions, all benefits accruing from UAE’S nearly 80 double tax treaties.
There are several other benefits available to a FTZ like issuing residence permits and obtain tax residence certificates from the UAE government authorities for its foreign executives and expatriates. Furthermore, if a local bank account is maintained with some fund movements, the foreign owners and executives can apply to the Ministry of Finance to receive UAE tax residence certificates. A UAE residence permit and a tax residence certificate can be useful to many foreign owners and executives of FTZs who wish to register in the UAE. It is worth noting that banking institutions in UAE and many outside consider UAE tax residence certificates as sufficient proof of tax residency in the UAE, as in all cases, the advice of a competent tax lawyer must be sought.
The United Arab Emirates has signed Double Taxation Avoidance Treaties (DTAT) with a number of countries so that individuals and businesses:
1. A request letter signed by the authorised signatory
2. A copy of the decree and act of incorporation
Eligible
Not Eligible
N R Doshi & Partners has gamut of experience in offering professional tax planning and structuring services. We can help you with the following:
If you want to setup your business in UAE, and need any help with tax residence certificate, feel free to contact us. We will be glad to assist you.