A UAE company will be exempt from corporate tax on dividends received and capital gains resulting from the sale of shares of a subsidiary company (referred to as the “participation exemption”). The main requirement to benefit from the participation exemption is that the UAE holding company must own at least 5% of the shares of the subsidiary company. Furthermore, the UAE does not impose withholding taxes and there are no restrictions on the repatriation of profits out of the UAE which is a significant advantage over other jurisdictions. The UAE registered companies that have been established in the UAE for at least one year are eligible to apply for a Tax Residency Certificate (TRC) from the Federal Tax Authority (FTA). If the company provides the following documents and gets approval on them, the UAE company will benefit from the UAE’s Double Tax Treaty network: A copy of the trade license with directors or shareholders attachment Establishment contract certified by official authorities A copy of the shareholders and directors’ passports A copy of the shareholders and directors’ Emirates IDs A copy of the shareholders and directors’ residence visas Validated bank statements for 6 months from a local UAE Bank A certified copy of the lease agreement