How to get UAE Residency Permit Issued in 1 Week 2019

The United Arab Emirates is one of the most attractive countries in the world in terms of the operation of business and residence. The attractive advantages of the country include tax free status, high standards of living, excellent opportunities for business development, economic and political stability.


UAE RESIDENCE PERMIT HOLDERS CAN APPLY FOR TAX RESIDENCY

Foreign nationals attempting to enter Qatar using a visitor visa for Gulf Cooperation Council (GCC) residents linked to a United Arab Emirates (UAE) residence permit will likely not be admitted. While no official policy denying entry to these nationals has been announced, they are being refused admission in practice.

UAE residence permit holders using visas that are not connected to their UAE residence permit, including visas-on-arrival, are being admitted. Accordingly, UAE residence permit holders seeking to enter Qatar are encouraged to use a visa other than the visitor visa for GCC residents linked to their residence permit.

A Tax Residency Certificate in the UAE is one of the official documents issued by the Ministry of Finance. UAE has signed the treaties with more than 90 countries to avoid double taxation. Tax residency certificate confirming the tax residence of a company or individual person in a given country. It will help to avoid the double taxation for foreign investors; companies form other taxable jurisdictions. The certificate issues for the company those who already registered in the UAE or individual person who has the residency visa.

For individuals and companies, there are some necessary requirements to obtain the Tax Residency Certificate. The process of issuing a tax residency certificate takes approximately 2 weeks to approve the application and up to 2 weeks for the delivery.

Innovative Zone has vast experience in offering Tax Residency Certificate in UAE for our clients and also helps entrepreneurs and firms in starting a business in Dubai through company registration, incorporation and legal consulting services.

Benefits of Tax residency in UAE:

  1. It confirms the status of a person or a company in the Emirates.
  2. For individuals who hold a tax residence certificate, except the real income tax, the rate of tax is zero.
  3. It facilitates the exchange of information.
  4. A tax residency certificate avoids double taxation during the import-export process.
  5. It leads to the strengthening of trade relations between countries.
  6. It fosters international trade to a great extent.

UAE RESIDENTS CAN OPEN A BANK ACCOUNT

Open an account in the UAE bank is not only prestigious and advantageous, but also not very hard. It gives a lot of opportunities to expand your business and banking at the highest international standards. If you use the services of a qualified firm, you can quickly get a score in one of the UAE banks, it is not necessary to change the place of residence.

In the UAE, local authorities welcomed the finding only the top 100 world-known banks. UAE banks have proven themselves in the world market as a stable financial tool developed service system throughout the world. Formally, the restrictions on opening accounts for individuals or entities do not exist, but there are peculiarities. Adulthood comes to the UAE 21 years, so the person who drives the account must be at least 21 years.

VISA ISSUED FOR 3 YEARS

If you have a valid UAE resident visa, you should see the exact date when your 2 or 3 year resident visa expires in the UAE immigration system.

  • In case, you realize that you’re visa is expiring soon, but you have to stay longer, you can do the following to renew your visa:
  1. Renew your Visa on Arrival Online using your international credit card – valid for some countries
  2. Go for a Visa Run to exit and re-enter UAE (valid for some countries).
  3. Go to an Amer Centre in-person and renew it
  4. Actually fly out and fly back in.
  5. Pay overstay fines

EXEMPTION FROM PERSONAL & CORPORATE TAXES

Dubai is a popular destination for expats from all across the globe, not just for the opportunities it promises but also for the lure of living a ‘tax-free’ life. The UAE is known as a tax-free country, but what does that really mean for those living here or for expats looking to move to Dubai?


Personal Income Tax

The UAE Federal Government does not impose taxes on the wealth of companies and individuals in the UAE, and contrary to some reports, the ruling family of Dubai has indicated that Dubai will never resort to taxation as a means of relieving debt, so it is unlikely that we will see any income tax levied in the years to come. However, if you are earning an income in Dubai, but are a tax resident of another country, you may be liable to declare your income and pay taxation on it. For example, if you are a tax resident of the UK and you own a property in Dubai that you earn a rental income from, you are required to declare this income on your British tax returns and may potentially have to pay tax on it, subject to certain conditions. The same is true if you move to the UAE for 6 months to live and work here but remain a tax resident of the UK; in this case you are likely to be subject to taxation in the UK. Alternatively, if you move permanently to the UAE and are out of the UK for a full tax year, you may be able to earn a 100% tax-free salary in Dubai under the following conditions as published on the website:


Corporate tax

Each emirate has its own laws on corporate taxes for companies operating within the emirate, but in reality taxes are imposed only on the following entities:

  • Foreign gas or oil producing companies dealing in oil or hydrocarbon production within the UAE. Although the tax rates are generally 55% of the company’s operating profits, they vary based on individual agreements between the company and the emirate in which it is operating. These agreements are usually confidential and rates may range from between 55% to 85%.
  • Branches of foreign banks operating within each emirate are subject to corporate tax, although not all emirates enforce this law. In Sharjah, Dubai, Abu Dhabi and Fujairah, foreign banks are subject to tax rates of 20% on their taxable income. There may be sligh variations in the rate from emirate to emirate.

UAE double taxation treaties and agreements

Agreements are signed between countries to avoid double taxation for reasons which might include the following

  • Individuals are not paying income tax to two governments on income earned in one country.
  • Individuals are not paying income tax on investments to more than one government.
  • Reduction or elimination of taxes paid on dividends and tax-exempt deposits.
  • Exemptions from capital gains taxes (CGT)
  • Agreements can be intended to boost bilateral economic relations.
  • Government investment in another country can take advantage of tax breaks generated by tax agreements.
  • Attract foreign investment and capital inflows to the UAE.
  • Exemption of freight taxes for national airlines and shipping companies.

MITIGATE CURRENCY RISK IN UAE

Investing in foreign assets has proven the merits of diversification, and most individual investors take advantage of the benefits of international assets. However, unless you invest in foreign securities issued in U.S. dollars, your portfolio will gain an element of currency risk. Currency risk is the risk that one currency moves against another currency, negatively affecting your overall return. Investors can accept this risk and hope for the best, or they can mitigate it or eliminate it. Below are three different strategies to lower or remove a portfolio’s currency risk.

Hedge the Risk With Specialized Exchange-Traded Funds

There are many exchange-traded funds (ETFs) that focus on providing long and short exposures to many different currencies. For example, the ProShares Short Euro Fund (NYSEARCA: EUFX) seeks to provide returns that are the inverse of the daily performance of the euro. A fund like this can be used to mitigate a portfolio’s exposure to the performance of the euro.

If an investor purchased an asset that is based in Europe and denominated in the euro, the daily price swings of the U.S. dollar versus the euro would affect the asset’s overall return. The investor would be going “long” with the euro in this case. By also purchasing a fund like the ProShares Short Euro Fund, which would effectively “short” the euro, the investor would cancel out the currency risk associated with the initial asset. Of course, the investor must make sure to purchase an appropriate amount of the ETF to be certain that the long and short euro exposures match 1-to-1.

ETFs that specialize in long or short currency exposure aim to match the actual performance of the currencies on which they are focused. However, the actual performance often diverges due to the mechanics of the funds. As a result, not all of the currency risk would be eliminated, but a vast majority can be. 

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