How to obtain a Tax Residency Certificate in UAE?

Tax Residency Certificate (TRC) in UAE is also knowns as Tax Domicile Certificate. The basic purpose of a TRC is to avoid double taxation. There are many countries who have Double taxation treaty with United Arab Emirates (UAE). Businesses, individual and government entities can apply.

Citizens and Expats in UAE can obtain a Tax Residency Certificate (TRC) in the UAE by submitting an application on Emaratax to the UAE's Federal Tax Authority (FTA) portal. Here’s a step-by-step guide:

Eligibility

Businesses and individual both can apply for a TRC in UAE.

Types

There are two types of TRC which serve different purpose, Following are the types:

• Tax Residency Certificate for Domestic Tax Purposes
• Tax Residency Certificate for Treaty Tax Purposes

Documents required - Individuals

1. Valid Emirates Id
2. Valid Passport copy
3. Valid UAE visa copy
4. Bank statement (6-months)
5. Tenancy Contract (Ejari, Hotel Bill, Title Deed)
6. Proof of income (Salary Certificate, Tile deed or Business License)
7. Travel Report of the requested period from the immigration
8. Email and Mobile Number

Documents required - Companies

1. Valid Business License in UAE
2. Memorandum of Association (MOA) or Article of Association (AOA)
3. Financial Audit Report (12 months)
4. Bank statement (6 months)
5. Tenancy Contract (Ejari, Hotel Bill, Title Deed)
6. VAT Registration Certificate - If available
7. Contact details and Email

Timeline

Federal Tax Authority (FTA) usually take 7 to 10 working days to review application and issue TRC.

Cost of Tax Residency Certificate (TRC)

AED 5o - Application Submission Fee

AED 1,000 - TRC fee for individuals (Non Registrants in VAT)

AED 1,700 - TRC fee for companies (Non Registrants in VAT)

AED 500 - TRC fee for companies (VAT Registered)

AED 250 - Printed TRC hardcopy

Validity Period

A Tax Residency Certificate (TRC) is valid for 1 year from the starting date of the financial year.

Steps involved in Application

• Sign up an account on FTA Emaratax portal
• Create application
• Fill all the information
• Upload all the required documents
• Submit application
• Make Payment
• Once application is approved, TRC document can be downloaded

The portal is very detailed which can navigate with all the options and give access to all the features.

Terms and Conditions for TRC

1. Companies that are applying for Tax Domicile certificate for treaty purposes, must have been established in the UAE for at least one year.

2. Individuals who are applying for residency certificate for treaty purposes, must have been residing in the UAE for at least 183 days during the requested financial year.

4. Offshore companies in UAE and the Branches of foreign companies are not eligible for the TRC because they are not considered to be established in UAE.

5. A tax residency certificate for a future period cannot be applied. Applicants can only apply for the TRC of the current period. This applies to both treaty purposes and domestic purposes.

• Only government institutes are eligible for future period

6. If a business who have a commercial activity then they must be registered under VAT and must have a Tax registration Number (TRN) in order to be eligible for the TRC.

Applicants can also request for a hardcopy. You can also submit a specific tax format to the tax authority in order to get it attested by them. If you are looking for Tax Residency Certificate in UAE, Contact Xact Auditing.

There are some countries who do not have a signed tax treaty with UAE. They cannot apply for the residency of tax. All the companies in UAE whether mainland or Free zone can apply for it.