Tax Residency Advisory

Tax residence refers to the legal and physical base on which tax is computed as per a country’s tax laws. However, Tax Residency relates more in an international cross-border context than to domestic tax laws in the GCC; specifically, to the lawful avoidance of double taxation in two countries under the Double Tax Avoidance Agreement (DTAA) treaties between countries. This is a major concern area especially for multinational businesses with operations across multiple tax jurisdictions. These companies can avail of applicable DTAAs that the respective GCC countries have with other countries. Tax Residency is applicable to both individuals and companies.

Residency is legally established by a Tax Residency Certificate (TRC). The TRC is an official certificate or document issued by the tax authority of a country to tax resident entities and individuals fulfilling the set residency criteria as per the residency regulations under the country’s domestic income tax laws. TRC – or Tax Domicile Certificate as it is known in some countries such as the UAE – is a prerequisite for claiming any benefits of lower or no taxation in the source or residence country vis-a-vis the DTAA.

Tax Residency is of critical importance to both individuals and companies but involves in depth knowledge of complex DTAA tax treaty provisions. At MBG Corporate Services, our UAE, KSA and GCC tax experts are vastly experienced in managing DTAAs and TRC. We advise you on the relevant provisions, help you obtain your TRC, and guide you through the process with:

• Advice on Residency implications for individuals under UAE, GCC and Egypt Income Tax laws and its interplay with the applicable DTAAs
• Advice on Residency implications for entities under GCC and Egypt Income Tax laws and its interplay with the applicable DTAAs
• Review of documents required for Tax Residency Certificate (TRC)
• Assistance in filing application with the respective tax department for TRC
• Responding to queries, if any, raised by the tax department
• Assistance in obtaining TRC from the tax department