"The Tax Domicile Certificate, as defined by the Ministry of Finance (MOF) UAE, is a document issued to eligible government entities, companies, and individuals. Its purpose is to enable them to benefit from agreements for the avoidance of double taxation on income, which have been signed by the UAE."
The Tax Domicile Certificate is essential for preventing withholding and income tax deductions from invoices or revenue sent by UAE-based entities to entities or individuals (buyers) residing in their respective host countries. In cases where an entity has provided export services or goods and anticipates the recovery of receivables subject to income tax regulations in the export destination, it can apply for the Tax Domicile Certificate in the UAE. This is particularly viable when the UAE has signed a double taxation treaty with the export destination country. By presenting this certificate to the export country, the entity can request a waiver of deductions.
"At JASM Accounting, our experts offer guidance on the following:"
- Instances necessitating the application of a Tax Domicile Certificate by an entity, including timing considerations and its effects on present and future sales.
- Evaluation of the cost versus the benefits associated with possessing the certificate.
- Processing duration and guidance from the relevant authorities.
- Key takeaways and practical insights derived from our past application experiences in the process.