Dual Taxation Treaty with UAE (Dubai) and UK Pension

Hello, I have been living in Dubai for the past 4 years and I am a UAE tax resident. I have a UK private workplace pension that I wish to withdraw. This will go through the PAYE route at the emergency 0T tax rate and I then will have to fill an HS304 form (I believe this is the document to use for amount >GBP100k). I have already submitted, via the completion of a Self-Assessment return, a claim for a tax refund related to a restricted incentive award payment, which is the process of being duly repaid. I have the following questions on HS304 and the documents to return: 1) Period resident in UAE during 2023/2024: my residency starts much before 2023 and will extend post 2024, but I am planning to reply 01/01/2023-31/12/2024. I suppose this is correct? 2) Article # of DTA: will be #17. 3) Include this figure in box 22 on the Residence, remittance basis etc pages: I have already completed a Self-Assessment/Residence etc…so what should I do? How to add this new pension part, all the more that I don’t have any available form print with me anymore as I have already used mine. 4) I am hesitant on how to reply to the following questions on the second page: “4- Has an application for full or partial relief at source been previously submitted to, and approved by, HMRC” do I answer yes, cf the above, or no, because the previous application wasn’t related to a pension fund redemption? Also, I don’t have any reference for the refund I am afraid. Alternatively, should I reply no the question, and yes to the next question: 5-Have you submitted any other claim to HMRC for the year ended 5 April 2024”? In addition to form HS304, I understand one has to provide proof of overseas residence. In Dubai, one can provide a residency visa of 10 years, a title deed of property, a consulate card from National Embassies etc…When it comes to getting a certificate of residence from the Authorities, they don’t stamp specific documents. Would it be possible to confirm what documents are requested specifically for the UAE (Dubai), as there must have been precedents of what is asked, so that it can be gathered before proceeding with the redemption? Thank you for your help.

Hi,
We are unable to review personal matters in this forum. For an answer to a personal question of this nature, you would need to contact our Self Assesment team for advice. 
Self Assessment: general enquiries
Thank you.

I’m no expert, but for proof of tax residency in Dubai you will need to apply for a tax residency certificate from the Federal Tax Authority online. The TRC is for the requirements of the Dual Taxation Treaty. I needed one to complete the DT form for relief of tax on UK pensions. It will cost you 1000AED plus 250AED per printed certificate should you need them, if you are a private individual. They will also require an entry exit report from immigration to prove your residency period. You can get one from an AMER centre at a cost of a few hundred AED. They will also require a residential Ejari as proof of living here, a salary certificate, a residency visa and an emirates ID, plus 6 months bank statements in one pdf, depending on your situation as a private individual. If you are a spousal sponsored resident or your name is not on the Ejari , you will also need a marriage certificate and their documents as above. The Tax Residency Certificate will last for one year. I’m in the process of getting my TRC now. I have got my draft TRC and now need to pay for it. I forgot to mention, the initial application is 50AED. You need to pay 1000aed once the TRC is granted. So if your application is rejected for whatever reason, you will only lose 50AED. The FTA will also message you with queries and requests in case they need more information. Just keep answering them within the 5 day timeframe. Question to HMRC. When I submit a TRC from the UAE with form DT individual, do I need to attach an original or can I submit a photo copy? I may need to submit several DT forms for different pension providers and if I need to get another TRC it will mean another application and another 1250 AED per certificate but if I ask for several printed copies it will only be 250 AED per certificate. The FTA will also supply a digital certificate as part of the original 1000AED fee, so if a copy is OK, I could save 250AED by printing it off.

Hi,
Yes, you can send a copy with your claim.
Thank you.

Thank you Apial, this is very helpful. I was planning to complete a form called HS304 and not the DT form, as I am not sure which one is the right one, I will probably complete both then! On the TRC, my understanding is that when requesting the Federal Tax Authority, they will typically go for the previous 365 days, unless asked different. Say one asks say on 1st Nov 2024 they would go for the period 1st Nov 2023- 31st Oct 2024 and testify one was a resident over that period. Is that OK for UK tax authorities, because they run April to April? Also, what is your planned sequencing: you ask for the TRC, then liquidate your pension, then send the DT form to HMRC with all details ? It’s a bit of a conundrum as TRC will provide a statement for a period that is before the date of exiting the pension fund and when the withholding tax is applied…But you mention that it’s valid one year, so I suppose it will be OK ? Thanks again (and thanks to HMRC for offering the forum).

I don’t normally do a Self Assessment Return, so form DT was correct for me. It might be different if you do a SA. I asked for a TRC from 1st Jan 2024 and it came as valid up until 31st Dec2024. So I assume any pension withdrawals made during this period are covered. I have just made a nominal pension withdrawal as a test. From memory, the FTA do not require 365 days, just 180. These days do not have to be continuous. They exclude days when you have left the UAE and they do not count the days on which you transited as being away. I am trying to find out if I can email my DT form and TRC to a relative to print off and post for me. I know a photocopy of the TRC is OK, so no point in paying 250AED for a printed one from the FTA. Just not sure if a photocopy of the signature is OK. I need to find out what a Payers Reference Number is on form DT box C2. Is it the payers PAYE reference number or the pension number? I think I’ll put both down. HMRC should make it more clear. Sequence: Ask for TRC. Withdraw a nominal pension withdrawal . Fill out DT using pension providers pension reference number and their address. Submit to HMRC. Wait for response. If affirmative , and tax code is amended to NT (no tax) then withdraw required balance from pension whilst TRC is valid. This should arrive using the NT tax code. Any unclaimed pensions will need to have another DT submitted when you decide to take them. Caveat. Be aware that should you return to the UK within the time period specified to trigger a UK tax claw back ( at least 5 years, and possibly more,) all the tax will become payable as if it had been taken on the day of return to the UK with no personal allowance given for previous years. It would be very helpful to both of us if an HMRC advisor could reply to the above.

Thank you very much. I wished I could liaise with you in direct on a couple of nitty-gritty matters. I get your reasoning now, if one picks the ins/outs as a proof of residency, as only 180 days are requested, then you will have a validity that will last until the 180 days min proportion could be potentially not be respected anymore (so an extra 6 months if you never have set a foot outside the UAE during the considered period). I won’t return to the UK, so not a source of worries. What is worrying me is the fact I won’t have any control on the efficiency of the Pension Provider, which may well take one month or so to deal with the withdrawal and provide the P45 document. Plus, one needs to include the time to send the DT/P45 to the HMRC and for them to reply (they are busy). From Dubai, post takes weeks so it’s a no go. What I was planning to do is to organize it so that I send the documents when I visit in my European country, as post should take a week or so from there. Nonetheless, I don’t believe it works to conduct one test to get the NT amendment + a second withdrawal within the validity timeframe (and without having to go and ask for another one, which will x2 the price of the process). I am planning to claim the whole pension and I had discounted that the withholding tax would be applied at the 0T tax rate, for me then to claim the refund with the docs mentioned. It seems to me impossible to short cut it and be able to withdraw at an NT rate. I think they have replied you need to send the original DT. What about you finding someone here that travels to the UK and can post it for you there? One thing I would also like to check is the address of where to send the docs. I have always sent my tax returns to Benton Park View, Newcastle Upon Tyne, NE98 1ZZ, UK. But in another post, HMRC is advising you to send to BX9 1AS.