Tax Residency Certificate

Who Can Apply for a Tax Residency Certificate?

• For Businesses : If your company has been operating in the UAE for at least a year in either the mainland or free zone, it may be eligible to apply for a TRC certificate. However, offshore companies do not qualify for the Tax Residency Certificate and must apply for a tax exemption certificate instead.
• For Individuals : Individuals who have lived in the UAE for a minimum of 180 days can apply for a Tax Residency Certificate. This is especially beneficial for those whose home countries do not have a double taxation agreement with the UAE. You must hold a valid UAE resident visa for at least 180 days before applying.

Requirements for Obtaining the TRC:

For Companies :

To apply for a Tax Residency Certificate (TRC), companies must meet the following requirements :

• Business Licensing : Valid UAE Trade License (active for over one year in Mainland DED or Freezone)
• Legal Structure : Memorandum of Association copy
• Entity Verification : Certificate of Incorporation (usually from the Chamber of Commerce)
• Internal Hierarchy : Organizational Chart of the company
• Physical Presence Proof : Commercial Tenancy Contract (valid for at least 3 months prior to application) with physical office space (no virtual office allowed)
• Individual Identity : Valid Passport Copy and UAE Resident Visa
• Management Identity : Emirates ID copies of directors, shareholders, or managers
• Financial Verification : Certified Audited Financial Statement or UAE Bank Statements from the past six months (stamped by the bank)

The application fee for a company’s TRC is AED 10,000, payable through the e-Dirham Card to the UAE Federal Tax Authority.

For Individuals :

For individuals applying for a Tax Domicile Certificate (TDC), the following documents are required:

• Personal Identification : Emirates ID Copy.
• Financial Proof : 6 months of Personal UAE Bank Statements (stamped by the bank).
• Residency Status : Passport Copy and UAE Visa Copy (valid for at least 180 days prior to application).
• Physical Presence Proof : Report from the General Directorate of Residency and Foreign Affairs, documenting all entries and exits from the UAE.
• Income Verification : Proof of Income in the UAE (employment agreement, pay certificate, share certificate).

The TDC application fee is AED 2,000, payable via the e-Dirham Card.

How to Apply for the TRC:

• Account Creation : Create an Account on the UAE Federal Tax Authority (FTA) portal to begin the official process.
• Form Completion : Carefully fill out the Application Form with all the required personal, business, and financial details.
• Document Upload : Upload all necessary supporting documents (as previously discussed, e.g., Trade License, Bank Statements) in the required format (PDF or JPEG).
• Verification Confirmation : Once the submitted documents are verified by the FTA, you will receive an official email confirmation regarding the application status.
• Fee Payment : Complete the process by paying the Remaining Fees through the system's designated payment gateway (e.g., e-Dirham).

UAE Tax Residency Certificate Timeframe:

• Pre-Approval Process : After submitting your application, the UAE Federal Tax Authority takes about 4 to 5 working days to verify your documents.
• Certificate Issuance : After approval and payment, the TRC or TDC is issued within 5 working days.
• Validity : The Tax Residency Certificate is valid for one year and can be renewed annually, following the renewal process.

Benefits of the UAE Tax Residency Certificate:

Having a TRC allows both individuals and businesses to take advantage of several benefits, such as :

• Avoiding Double Taxation : Prevents you from being taxed twice on the same income in both your home country and the UAE.
• Access to Double Taxation Agreements (DTAs) : Enables you to benefit from tax reductions or exemptions under agreements between the UAE and other countries.
• Tax Reliefs and Exemptions : Access to various tax breaks in the UAE, which can significantly reduce your tax liabilities.
• Global Business Expansion : As a tax-resident company in the UAE, you’ll have better access to international markets and reduced tax overhead when establishing your business in regions with DTAs.

Get Your Tax Residency Certificate Today!

Don’t miss out on the tax benefits you could receive with a TRC certificate. Whether you’re an individual or a company, securing your Tax Residence Certificate will streamline your tax process and help you save more.

Contact us today to start your application for the Tax Residency Certificate and benefit from tax reliefs, DTA agreements, and more!