Tax Domicile Certificate is defined by Ministry of Finance (MOF) UAE as “A certificate issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income signed by the UAE”.
Tax Domicile Certificate is required to avoid withholding and Income tax deduction from UAE based entity’s invoices/revenue sent to entities/individuals (Buyer’s) residing in their host countries. In the situation where the entity has provided export services or goods and expects the recovery of receivables subject to income tax regulation of the export destination, it can apply for Tax Domicile Certificate in the UAE where the UAE has signed double taxation treaty with the subject country (export destination) and request for deduction waiver after producing the certificate to the export country.
Our experts at Virtual Accountants (VA) provides guidance on the following:
• Situations where Tax Domicile Certificate should be applied by an entity, its timing and impact on current and prospective sales.
• Cost vs Benefit of holding the certificate.
• Processing time and authority guidance and
• Extracts or practical insights from our previous applications for the process.