Definition

A Withholding Tax Certificate is an official document issued to prove that tax has been withheld and remitted on a payment made to a non-resident under UAE tax law or treaty.

Key points

• Issued by the payer or FTA depending on context.
• Typically required in international transactions.
• Helps foreign recipients claim tax credits in their home country.

Practical example

A UAE company pays royalties to an overseas partner and issues a withholding tax certificate showing the 0% UAE withholding rate under a treaty.

Why it matters

Ensures transparency in cross-border payments and supports tax treaty compliance.