TAX RESIDENCE CERTIFICATE IN DUBAI

Tax residence certificate is a certificate issued by the UAE authority to take advantage of double taxation avoidance agreements signed by the UAE. Apart from UAE residents, onshore and free zone entities registered in UAE can also obtain the certificate of tax residency in order to gain the advantages of the double tax treaties signed in between UAE and rest of the countries.  Tax residence certificate certificates can be issue by the authority with the clear indication in respect to the Double Tax Treaty (DTT) agreement with which country it refers to. UAE Offshore entities are not eligible to obtain tax residence certificate.

Requirements for TAX Residence Certificate for Corporate Entity              

1. Trade license. (Note: license should be valid for more than a year) 
2.  Lease contract. 
3.  Copy of the passport and residence of the company director.
4. Request letter from the company. 
5.    Bank statement for the last 6 months

Requirements for TAX Residence Certificate for Individuals

1.  Passport copy and valid visa copy 
2. Request Letter from the person
3. Bank statement for the last 6 months. 
4. Source of income with attested certificate. 
5. Certificate from the sponsor stating the individual activity and source of income.

For consultation:

Davis V Kadavan

Mob: 00971509330152

Email:davis@hlbhamt.com / davis@nexconsultants.com
Website : www.nexconsultants.com

DOING BUSINESS IN DUBAI

Located within the United Arab Emirates, Dubai is a not only a traveller’s paradise but also a growing business hub. Housing traveller’s delight like the Burj Khalifa, which is the tallest building in the world, Dubai continues to captivate travellers. This is also done with the objective to lure travellers so that Dubai can maintain the inflow of foreign cash into the economy. Travellers revel in the delightful shopping plazas and that is an attraction which fuels the economy of Dubai. In 2010, a survey found Dubai to be the 7^thmost visited city in the world. Reason enough for you to start thinking about doing business in Dubai.

By 2015, it is expected that Dubai will accommodate about 15 million tourists. With such factors that contribute to the development of Dubai’s economy, doing business in Dubai is a safe and rewarding proposition. If you think that shopping, travel and tourism are the only factors that can draw investors to the idyllic city of Dubai, think again. Another credential that Dubai can be proud of is being chosen the host of 2020 World Expo. In 150 years since the inception of the World Expo, it is the first time that a Middle Eastern country has been chosen to play host.  

 

Dubai bagged this opportunity to host the World Expo 2020 by ousting the bids from the likes of Turkey, Brazil, and Sao Paulo etc. The three rounds of voting by the delegates who belong to the 168-nation Bureau International des expositions in Paris, decided in favour of choosing Dubai as the next host. The authorities in Dubai have inkling that this could mean generating revenue of $ 23 billion between the years 2015 and 2021, and the cost of organising this event will be close to $ 8.4 billion. Doing business in Dubai never saw a more opportune moment.

 

If your heart is set on setting up a business in Dubai, you can take heart in the fact that Dubai is emerging as a commercial hub with the infrastructure you need for your business to gain a foothold.  For a multinational business, Dubai is a favoured location because of factors like a strategic location, nil corporate or personal income tax, and a value-added platform. If you are on the lookout of a city where doing business would mean easy access to markets in the countries of Central Asia, East Africa or the Middle East, Dubai is where you should consider setting your foot first. The cosmopolitan environment and business-centric ambiance aside, the combined GDP of $ 6.7 trillion, makes Dubai a destination to watch out for. 

WAGE PROTECTION SYSTEM (WPS) IN DUBAI

WPS - At Glance

Wages Protection System (WPS) is an electronic salary transfer system that allows institutions to pay workers’ wages via banks, bureaux de change, and financial institutions approved and authorized to provide the service.

The system, developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages.

The WPS covers all institutions registered with the Ministry across all sectors and industries and will benefit different categories of labour.

 Requirements of WPS

1. The company needs to be registered with the Ministry;

2. The company should have a bank account with one of the banks operating in the UAE;

3. The company should enter into contract with any bank, bureau de change or financial institution approved and authorized by the Central Bank of the UAE to provide the service. The two parties shall agree on any service fees and charges.

4. Workers’ wages will be transferred via WPS by the deadlines specified in the Ministerial Resolution No. 788 of 2009.

5. The institution will have to transfer workers' wages via WPS within two weeks of their due date, or on the dates specified in the work contract if wages are paid more frequently than monthly.

6. The employer will be responsible for all expenses incurred upon joining WPS, including bank fees, service provider charges, and all other costs. Employers are not allowed to share any costs with workers' by any means, including deducting from their wages, directly or indirectly

Consequences of  Failing  to Join WPS

Institutions failing to transfer workers' wages by the deadlines specified above will be denied the right to have new work permits. This ban will only be lifted in the month following the transfer of workers' wages in full.

Institutions that delay wages’ payment more than one month of the due date will be denied the right to have new work permits, along with all institutions owned by the owner of the violating institution, and to refer all those responsible for the violation to the court, in accordance with Ministerial Resolution No. 788 of 2009.