The UAE 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 a recent cabinet decision on fees for services provided by the Authority.

 

The FTA will begin receiving applications for the issuance of Tax Residency and Commercial Activities Certificates via its e-services portal starting from November 14.

 

The FTA explained that there are two categories of tax certificates which are issued to firms and individuals, the first being the Tax Residency Certificate, issued by 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, reported state news agency Wam.

 

FTA Director-General Khalid Ali Al Bustani said: "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."

 

The Authority clarified that eligible individuals can easily issue Tax Residency and Commercial Activities Certificates through a simple registration process via the Federal Tax Authority’s official website. 

 

The process is completed by submitting the required supporting documents and paying the fees, said the report. 

 

These specified fees were a requirement for the Tax Residency Certificate, as an application is reviewed for any normal or legal person that is not registered with the Authority and providing a print copy of the digital Tax Residence Certificate, it added.