Ceasing your tax residency in the United Arab Emirates (UAE) can be a meticulous process, but with the right guidance, it can be managed efficiently. Follow this step-by-step guide to ensure a smooth transition.
Step 1: Assess Your Residency Status
Determine if you meet the criteria for ceasing tax residency. Typically, this involves evaluating your physical presence in the UAE and your intention to reside elsewhere.
Step 2: Notify Relevant Authorities
Inform the Federal Tax Authority (FTA) and other relevant government bodies of your intention to cease tax residency. This often requires submitting formal communication or specific forms.
Step 3: Settle Outstanding Taxes
Ensure that all outstanding tax liabilities are settled. This includes any pending payments, fines, or penalties that may be due.
Step 4: Cancel Residence Visa
Apply for the cancellation of your UAE residence visa. This process is managed by the General Directorate of Residency and Foreigners Affairs (GDRFA) and usually requires the submission of various documents.
Step 5: Close Bank Accounts and Financial Obligations
Close any UAE-based bank accounts and settle any financial obligations, such as loans or credit cards, linked to your residency.
Step 6: Obtain a Tax Residency Certificate
Request a tax residency certificate from the FTA to document your period of tax residency in the UAE. This certificate may be required for tax purposes in your new country of residence.
Step 7: Keep Records
Maintain a comprehensive record of all communications and transactions related to ceasing your tax residency. This will be useful for any future references or legal requirements.
Legal References
- Federal Decree-Law No. 8 of 2017 on Value Added Tax
- Cabinet Decision No. 52 of 2017 on the Executive Regulations of the Federal Decree-Law No. 8 of 2017 on Value Added Tax
- Ministerial Decision No. 26 of 2019 on the Implementation of the Provisions of the Decree-Law on Value Added Tax
Useful Links
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