Tax Residency Certificate UAE

Are you looking to optimise your tax position and take advantage of the UAE's expansive network of Double Taxation Avoidance Agreements (DTAAs)? A Tax Residency Certificate (TRC) is the key to ensuring you’re not paying taxes in two different countries on the same income. Whether you're an individual looking to confirm your tax residency status or a business seeking to streamline your cross-border operations, the TRC certificate is your passport to financial efficiency and global business growth.

At Filings.ae, we make obtaining your Tax Residency Certificate UAE quick, easy, and hassle-free. Our expert team will guide you through every step of the application process, ensuring full compliance with all regulations.

Contact us today to get started!

Tax Residency Certificate UAE - TRC certificate

A Tax Residency Certificate (TRC), also known as a Tax Domicile Certificate, is an official document issued by the Ministry of Finance of the UAE.  TRC certificate confirms an individual’s or business’s tax residency status in the country. This certificate proves that the holder is a tax resident of the UAE, making it essential for those seeking to benefit from the UAE’s Double Taxation Avoidance Agreements (DTAAs) with other nations.

To qualify for these agreements, individuals must present a Tax residency Certificate UAE that proves their residency in the UAE and their tax status. The TRC can be applied through the EmaraTax Portal, which is the official online platform of the Federal Tax Authority.

Double Taxation Avoidance Agreements (DTAA)

Double taxation occurs when the same taxpayer or taxable entity is subjected to taxes on the same income or activity in two different countries. This can hinder the movement of goods, services, and technology between nations. To address this, Double Taxation Avoidance Agreements (DTAAs) have been established to eliminate or reduce the risk of double taxation between countries with significant cross-border investments.

The UAE's first Double Taxation Agreement was signed with France, and it has since expanded to 146 agreements, including the most recent one with Qatar.  

Advantages of a TRC Certificate 

A Tax Residency Certificate (TRC) in the UAE significantly benefits both individuals and businesses. Here's how it helps:

• Managing Double Taxation: The Tax Residency Certificate (TRC) allows individuals and businesses to benefit from the Double Taxation Avoidance Agreements (DTAAs) the UAE has signed with various countries. This prevents the same income from being taxed twice across different jurisdictions.

• Strengthened Credibility: Possessing a TRC certificate enhances an individual’s or business’s credibility, particularly with foreign tax authorities, by proving tax residency in the UAE.

• Reduced Withholding Taxes: Tax residency certificate UAE holders can benefit from reduced withholding taxes on income types such as dividends, interest, and royalties, which are in line with applicable DTAA provisions.

• Tax Planning Effectiveness: A TRC helps individuals and businesses optimise their tax liabilities and plan tax structures more effectively, leading to potential reductions in overall tax obligations.

• International Market Access: DTAAs offer businesses the opportunity to operate more competitively in foreign markets by reducing tax burdens, ultimately increasing profitability.

• Compliance with the Law: Holding a TRC certificate ensures compliance with international tax regulations, safeguarding individuals and businesses from legal complications related to tax residence and double taxation.

Types of Tax Residency Certificate UAE

There are two main types of tax residency certificates UAE are issued,

TRC Certificate for Treaty Purposes

This tax residency certificate UAE is issued to individuals or businesses who wish to benefit from the provisions of a Double Taxation Avoidance Agreement (DTAA) between the UAE and another country.

TRC Certificate for Domestic Purposes

This tax residency certificate in the UAE is issued to individuals or businesses who are seeking to establish their tax residency status within the UAE for domestic tax purposes.

Who Can Obtain a Tax Residency Certificate in the UAE?

Here’s who qualifies for a TRC certificate in the UAE:

• Dubai Mainland Companies

• Free Zone Companies

• Employed Individuals

• Corporates with a Good Track Record

Note: Offshore corporations are not eligible for tax residency certificates, so they must obtain a tax exemption certificate instead.

TRC Eligibility Criteria

To apply for a Tax Residency Certificate (TRC), both legal entities and natural persons must meet specific criteria set by the UAE's Federal Tax Authority.

For Legal Persons

To be eligible for a Tax Residency Certificate (TRC), a legal entity must meet the following criteria:

• The entity must have been in operation for at least one year.

• Financial statements must be audited by a certified accounting firm.

• The audited financial report should cover the relevant financial year for which the TRC is requested.

• The previous year's audit report must be included if the certificate is being applied for the current year.

• The business must be actively engaged in commercial activity within the UAE.

For Natural Persons

Individuals must meet the following requirements to apply for a Tax Residency Certificate UAE:

• The person must be primarily based in the UAE, with the majority of their financial and personal interests located in the country.

• They must have been physically present in the UAE for at least 183 days within a consecutive 12-month period.

• An officially documented annual lease agreement (e.g., EJARI in Dubai or similar municipal or free zone agreements in other Emirates) must be submitted along with the application.

When to Apply for Tax Residency Certificate UAE?

In October 2024, the UAE's Federal Tax Authority (FTA) released a comprehensive guide outlining the new timing for applying for a Tax Residency Certificate UAE (TRC) based on the type of applicant.

• For Juridical Persons (Companies): Companies can now apply for a TRC 3 months after the start of the relevant tax period, rather than waiting until the end of the tax period. This change allows companies to apply earlier, streamlining the process.

• For Natural Persons (Individuals): Individuals can apply for a TRC as soon as they meet the criteria for tax residency, whether under UAE Domestic Law or through a Double Taxation Agreement (DTA). This means individuals no longer have to wait until the end of the tax period to submit their applications.

• For Government and Government-Controlled Entities: These entities are eligible to apply for a TRC on the first day of the relevant tax year.

Additionally, the TRC certificate cannot be applied for a future tax period (one that has not yet started) due to the uncertainty of residency status for that period.

• For Newly Incorporated Companies: A newly incorporated company must have been established for at least 12 months before it can apply for a TRC, as it needs to have completed at least one tax return filing.

Documents Required for Obtaining a Tax Residency Certificate in Dubai

The documentation needed to obtain a Tax Residency Certificate (TRC) in Dubai depends on whether the applicant is an individual or a corporate entity. Here's a breakdown:

For Tax Treaty Purposes

If the Applicant is a Natural Person:

• Emirates ID (must match the name on the card for verification)

• Passport

• Valid Residence Permit

• Verified copy of Residential Leasing Agreement

• Income Source/Salary Certificate

• Bank Statement issued by a local bank (covering 6 months within the financial year)

• Entry and Exit Report from FTA or a local competent Government Entity

• Proof of Permanent Place of Residence (e.g., Electricity Bill or Lease Agreement under the applicant's name)

•  For private property, provide the title deed

Source of Income:

• Self-employed individuals: Provide a trade license

• Property owners receiving income: Lease Agreement

• Retired individuals: Statement explaining the use of savings and investments, with supporting documents

• If sponsored by spouse: Marriage certificate, source of income, or salary certificate

If the Applicant is a Legal Person:

• Authorised person’s Emirates ID and Passport

• Trade License

• Memorandum of Association (MoA)

• Proof of Authorization (From MoA & PoA)

• Audited financial report by a certified auditor (must match the fiscal year start date)

• Certified Lease Agreement

• Bank statement from a local bank for 6 months within the financial year

If the Applicant is a Legal Person – Government Entity:

• Copy of the Government Decision or Decree or Trade License

• Request letter from the Government Authority

For Domestic Purposes:

If the Applicant is a Natural Person who has spent more than 183 days in the UAE:

• Passport (mandatory), Emirates ID, or UAE Residence Visa (if available)

• Entry and Exit Report from the Federal Authority of Identity and Citizenship or a local Government entity

If the Applicant is a Natural Person who has spent less than 183 days but at least 90 days in the UAE:

• Passport (mandatory), Emirates ID, or UAE Residence Visa (if available)

• Entry and Exit Report from the Federal Authority of Identity and Citizenship or a local Government entity

• Proof of income, salary certificate, proof of conducting business, or permanent residence (Title Deed, EJARI, Utility Bills, or Long-Term Rent Contract)

If the Applicant is a Natural Person who has spent less than 90 days in the UAE or in other situations:

• Passport (mandatory), Emirates ID, or UAE Residence Visa (if available)

• Entry and Exit Report from the Federal Authority of Identity and Citizenship

• Proof of financial and personal interests (occupation, familial relations, cultural activities, property management)

• Proof of permanent residence (Title Deed, EJARI, Utility Bills, or Long-Term Rent Contract)

TRC Validity

The Tax Residency Certificate (TRC) in the UAE is valid for one year from the date of issuance. It is applicable for transactions within the specific financial year. Once the year ends, you may need to renew or reapply for the TRC certificate to maintain your tax resident status.

Process to Obtain a Tax Residency Certificate in UAE

To obtain a Tax Residency Certificate (TRC) in the UAE, follow these steps through the FTA's EmaraTax Portal:

• Log in or Register: If you already have an account on EmaraTax, simply log in. If not, create a new account. If your account is linked to the previous TRC portal, ensure it is connected to EmaraTax.

• Navigate to TRC Application: Once logged in, go to the "Other Services" section and click on "Tax Residency Certificate" on the dashboard. A prompt will ask whether you are a registered taxpayer. Choose "Yes" if registered; otherwise, select "No."

• Provide Tax Details: If you're a registered taxpayer, enter your Tax Registration Number (TRN) and email used for e-services, or choose the option "TRN Not Available" if you are not registered.

• Select TRC Purpose: Choose whether the certificate is for "Domestic Purposes" or "Tax Treaty Purposes.

• Choose Application Type: Select "Legal Persons" if applying for a company or "Natural Persons" if applying for an individual. If you are a government entity, choose "Legal Person Government."

• Enter Required Information: For legal entities, provide your Trade License Information. For individuals, you will need to input relevant residency details. Select the country where the certificate is to be issued and provide the financial start date that should appear on the certificate.

• Upload Documents: Ensure all required documents are uploaded and submit your application. A confirmation screen will appear for you to verify the details, as no changes can be made later.

• Enter Delivery Information: Provide the address for the hard-copy certificate if needed. Ensure you check the required boxes to self-declare the conditions.

• Payment: The final step is payment. You can pay via Credit/Debit Card, Samsung Pay, or Google Pay to complete your TRC application.

• Download Your TRC: Once your application is processed and approved, you can download your Tax Residency Certificate directly from the EmaraTax portal. Alternatively, the certificate will be sent to you via email.  

Duration for TRC Certificate Processing

It can take a few weeks to a few months to receive your Tax residency certificate UAE, depending on the Federal Tax Authority's processing time, the completeness of your documents, and the current application workload.

Key Details Included in a Tax Residency Certificate UAE

For Legal Persons:

The Tax Residency Certificate for legal entities in the UAE includes the following details:

• Federal Tax Authority logo

• Certificate number

• Submission date

• Name of the entity

• Trade license issuer

• Trade license number

• Tax treaty between the two governments

• Certificate validity period

• Certificate validity QR code

For Natural Persons:

The Tax Residency Certificate for natural persons includes the following details:

• Federal Tax Authority logo

• Certificate number

• Submission date

• Name of the individual

• Nationality

• Passport number

• Visa number

• Tax treaties between governments

• Certificate validity period

• Certificate validity QR code

Why Choose Filings.ae for TRC Certificate?

Filings.ae offers a streamlined and efficient process for obtaining your Tax Residency Certificate (TRC) in the UAE. Our team of experts ensures that all the necessary documentation is accurately prepared and submitted, saving you time and effort. We guide you through every application process step, from gathering the required documents to completing the online submission. With a deep understanding of the UAE's tax laws and regulations, Filings.ae provides reliable, professional service to help individuals and businesses navigate the complexities of obtaining a TRC Certificate. Whether you need it for tax treaty purposes or domestic use, we ensure a smooth, hassle-free experience, allowing you to take full advantage of the UAE's tax benefits.

Contact Filings.ae today to start your TRC certificate application. Our team is ready to assist you every step of the way, ensuring a seamless process.