MD 247/2023 — Tax Residency Certificates for tax treaties

Factual summary

Lets a person who meets the residency conditions of a particular International Agreement apply to the FTA for a Tax Residency Certificate for the purposes of that agreement. The application follows the FTA's form and manner, and the FTA may issue the certificate in the form attached to the decision, which names the double taxation agreement and the other country and states the validity period, or in another acceptable form.

What it means in practice Professional insight

Who: companies and individuals claiming treaty benefits abroad. What to check: that the residency test of the relevant treaty is met, and that the certificate names the correct agreement and covers the period needed.

Key provisions

• Art. 2(1) For the purposes of Art. 6 of Cabinet Decision No. 85 of 2022, a Person who meets the conditions of tax residency in the State under the relevant International Agreement may apply to the Authority for a Tax Residency Certificate for the purposes of that agreement.
• Art. 2(2) The application is made in the form and manner specified by the Authority and must include all information the Authority needs to issue the certificate.
• Art. 2(3) If satisfied that the applicant meets the residency conditions of the relevant International Agreement, the Authority may approve the application and issue the certificate in the form attached to the decision or in any other form acceptable to it.
• Schedule The attached certificate form records the applicant's details (such as nationality, passport, resident visa, Emirates ID, commercial licence and Corporate Tax registration number, where applicable), certifies residence in the UAE under the named double taxation agreement with the other country, and states the period of validity.
• Art. 3 Effective from 1 March 2023.