Ministry of Finance (MOF) UAE defines Tax Domicile Certificate as “A certificate issued to eligible government entities, companies, and individuals to take advantage of double taxation avoidance agreements on income signed by the UAE.”

To avoid withholding and income tax deduction from invoices/revenue sent to entities/individuals (Buyers) residing in their host countries, a Tax Domicile Certificate is required. When an entity has provided export services or goods and anticipates the recovery of receivables subject to the income tax regulation of the export destination, it may apply for a Tax Domicile Certificate in the UAE if the UAE has signed a double taxation treaty with the subject country (export destination) and request a deduction waiver after producing the certificate to the export country.

Our specialists at Elucidation for Accounting (ElucidationAcc) offer advice on the following:

·        Circumstances in which an entity should apply for a Tax Domicile Certificate, as well as its scheduling and impact on current and future sales.

·        Cost versus Benefit of certification possession.

·        Guidelines for processing time and authority and

·        Extracts or practical insights from our prior process applications.