Tax Residency Certificate
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TAX RESIDENCY
CERTIFICATE UAE
A Tax Residency Certificate (TRC) also called as Tax Domicile Certificate is used to avoid getting taxed on the same income in two different countries by taking advantage of the Double Taxation Avoidance Agreement entered into between two countries.
As UAE is stepping into the new phase of Corporate Tax, the importance of obtaining Tax Residency Certificate UAE or TRC in UAE is also rising. Federal Tax Authority is responsible for issuing the Tax Residency Certificate in UAE.
Who are eligible to obtain
TRC Dubai?
Natural persons:Â The applicant must have been a resident of the UAE for at least 180 days. EJARI or such other relevant documents showing tenancy is a basic requirement.
Legal persons:Â A Tax Residency Certificate is available to any company operating on the mainland or in a free zone which has been operating in the country for at least 1 year.
Offshore companies are not allowed to apply for the Tax Domicile Certificate UAE because they are not listed in the Double Taxation Avoidance agreements. They can get Tax Exemption Certificates instead.
Validity Of TRC Dubai
TRC Dubai?
The Tax Residency Certificate is valid for one year from the date of issue
Benefits of obtaining Tax Residency Certificate
Avoids getting taxed for the same income in two different countries.
Validates that the applicant is a resident in UAE
Eases the process of cross border transactions
Avoids double taxation during the import-export process
Strengthens trade relationships between countries
Documents required for obtaining Tax Residency Certificate
Companies:
- Valid Trade License Copy
- Passport & Emirates ID Copy of Manager/Authorized Signatory
- Vat Registration Number (TRN)-Subject to availability
- Latest Audited Financial Statements
- Bank statement for the previous six months of a local bank
- Tenancy contract copy or any residence address of the Shareholder(s)/General Manager
- Memorandum of Association or other relevant Documents.
- Immigration In & Out statement of General Manager or Shareholder(s)
Individuals:
- A copy of Passport & residence permit
- A copy of Emirates ID
- Salary Certificate/Source of income/Labor Contract/3 months Salary slip
- Bank statement for the previous six months of a local bank
- Certified copy of residential lease agreement/Proof of residence
Duration to obtain Tax Residency Certificate UAE
As per the Federal Tax Authority, the bare minimum period to approve the TRC application is 3 business days. Once the application is approved, 5-7 business days will be required for the final delivery of the certificate.
Approximate Government Fees for obtaining Tax Residency Certificate
| Issuance of Different kind of TRC | Price in AED |
|---|---|
| Application Submission | AED 50/Application |
| Issuance of TRC | |
| Tax Registrant | AED 500 |
| Non Registrant legal persons | AED 1,750 |
| Non Registrant natural persons | AED 1,000 |
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A UAE Tax Residency Certificate is a certificate issued by the Federal Tax Authority to a company or individual who has a place of residence in the UAE to use the benefit of double taxation avoidance agreements UAE has entered with various countries. Based on this tax certificate, UAE tax resident can be relieved from taxes in their home country as he is considered a tax resident in the UAE.
Yes. A UAE residential address is required for obtaining TRC in UAE.
Offshore companies are not allowed to apply for the Tax Domicile Certificate UAE because they are not listed in the Double Taxation Avoidance agreements. They can get Tax Exemption Certificates instead.
No. A local bank account held for at least a period of six months is mandatory to apply for tax residency certificate.
Yes. By paying an additional charge of AED 250, a printed certificate can be obtained.
Yes. TRC from a previous date can be obtained by submitting a bank statement covering the relevant period and a home address proving your residence in the UAE during the time.
FAQs on Tax Residency Certificate in UAE
