Ministry of Finance stopped issuing Tax Residency Certificate via their website from 11th November 2020.
The Federal Tax Authority (FTA), in coordination with the Ministry of Finance has completed its preparations to issue both digital Tax Residency and Commercial Activities Certificates, in line with the Cabinet Decision No. 65 of 2020 on Fees for Services provided by the Federal Tax Authority issued October 2020.
The Authority started receiving applications for the issuance of Tax Residency and Commercial Activities Certificates as of 14th November, 2020.
The FTA explained that there are two categories of tax certificates which are issued to companies and individuals, the first being the “Tax Residency Certificate”, a certificate issued by the FTA upon request to enable applicants to benefit from Double Tax Avoidance Agreements, DTAA, signed between the UAE and other countries. The second is the Commercial Activities Certificate which is a certificate issued by the FTA to enable applicants to refund VAT paid in advance outside the UAE, whether or not DTAAs are applicable.
“Both Tax Residency and Commercial Activities Certificates allow investors in the UAE, including companies and individuals, to benefit from double taxation avoidance agreements to which the State is a party, to prevent duplication, in addition to recovering VAT imposed on Emirati businesses in various countries in the event they were registered with the Authority,” said Khalid Ali Al Bustani, Director-General of the FTA.
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