How to Obtain Tax Residency Certificate TRC in UAE?

Tally Solutions | Updated on: November 14, 2022

• What is a Tax Residency Certificate (TRC)?
• Requirements for a company to get Tax Residency Certificate (TRC)
• Requirements for an individual to get Tax Domicile Certificate (TDC)
• Process of obtaining the Tax Residency Certificate
• UAE Tax Residency Certificate timeframe
• Benefits of UAE Tax Residency Certificate

The diverse economy of the UAE is attracting investment from all around the world. One of the many incentives which attract businesses to the UAE is its favorable tax environment.

UAE established double taxation agreements with many countries around the world to ensure that taxes are not charged twice in two countries on the same taxpayer. Additionally, the majority of companies that base themselves in the UAE are exempt from income tax. Nowadays, the UAE has 123 double taxation agreements in force or pending.

In order to benefit from the double taxation agreements in the UAE, companies or individuals must have a Tax Domicile Certificate (TDC), also known as a Tax Residency Certificate (TRC).

What is a Tax Residency Certificate (TRC)?

Tax Residence Certificate (TRC), referred to the certificate that is issued by the UAE Federal Tax Authority (FTA) to a company operating in the UAE to establish tax residency and allow it to get benefit from the double taxation avoidance agreements. The certificate – also titled tax domicile certificate in UAE, is for individuals having residence in the UAE, an organization, or a legal entity.

Any company operating on the mainland or in a Freezone that has been active in the UAE for at least a year is eligible for The Tax Residency Certificate. However, Offshore companies are ineligible for this and must receive a tax exemption certificate instead of the Tax Residency Certificate.

Also, individuals who have resided in the UAE for at least 180 days are eligible for The Tax Residency Certificate. This is especially beneficial for individuals whose mother countries do not have a double taxation agreement with the UAE, the individuals must have a valid UAE resident visa for more than 180 days to apply.

Requirements for a company to get Tax Residency Certificate (TRC)

• Valid UAE Trade Licence, active for over 1 year in (Mainland DED or Freezone)
• A copy of the Memorandum of Association of the company
• A copy of the Certificate of Incumbency for the company (normally the Chamber of Commerce certificate)
• The company organizational structure chart
• A copy or a title deed of a certified commercial tenancy contract (valid for at least three months prior to application) with a physical office space as virtual office space will not be accepted
• A copy of a valid passport and a valid UAE resident visa
• A copy of Emirates ID of the company directors, shareholders, or managers
• Latest certified audited financial statement or UAE company bank statements from the last 6 months, stamped by the UAE bank
• Tax Residency Certificate application fees are AED 10,000, payable to the UAE Federal Tax Authority through the e-Dirham Card

Requirements for an individual to get Tax Domicile Certificate (TDC)

• A passport copy and a valid visa copy are issued at least 180 days prior to the application
• An Emirates ID copy
• 6 months of personal UAE bank statements, stamped by the UAE bank
• Proof of income in UAE such as an employment agreement, share certificate, or salary certificate
• A report from the General Directorate of Residency and Foreign Affairs shows evidence of all entries into and exits from the UAE
• A copy or a title deed of the certified tenancy contract valid for at least three months prior to application
• Tax Domicile Certificate application fees are AED 2000, payable to the UAE Federal Tax Authority through the e-Dirham Card

Process of obtaining the Tax Residency Certificate

• Create an account on the payable to the UAE Federal Tax Authority portal
• Complete the application form
• Upload the required documents in PDF or JPEG format
• Your application and attached documents will be verified and if they meet the criteria, you’ll receive a confirmation email to pay the remaining fees via the system
• After payment confirmation, you’ll receive the certificate via an express courier

UAE Tax Residency Certificate timeframe

Pre-approval process: 4 to 5 working days for the UAE Federal Tax Authority approval and confirmation that all uploaded documents are correct, after completing the application form and uploading all required documents.

Certificate issue process: 5 working days after the UAE Federal Tax Authority approval and confirmation, and after the application fees payment

Validity of Certificate: The Tax Residency Certificate / Tax Domicile Certificate has a validity period of 1 year, and can then be renewed annually, subject to resubmission and renewal process.

Benefits of UAE Tax Residency Certificate

• Individuals and companies are permitted to get separate UAE Tax Residency Certificates which allow income to be covered at both individual and the corporate level
• Avoid double taxation and receive tax incentives as a resident in the UAE
• Access to international markets when setting up your business in Dubai or Abu Dhabi

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