UAE Tax Residency Certificate: TRN Mistake Businesses Make

Applying for a Tax Residency Certificate (TRC) in the UAE is generally viewed as a procedural formality. Yet, over the past few months, many businesses, professionals, and advisors have encountered unexpected portal failures, blank application screens, rejections, and incorrect government fees despite meeting all eligibility requirements. In most cases, the issue is not compliance, documentation, or substance.

It comes down to one small but critical choice made early in the process: Incorrect selection of the Tax Registration Number (TRN).

This single selection determines how the TRC portal classifies the applicant and directly impacts whether the application progresses smoothly or results in delays and excess costs. This blog explains why TRN selection matters, how the UAE TRC portal currently behaves in practice, and the correct way to apply, especially where an entity is registered only under Corporate Tax.

What Is a Tax Residency Certificate (TRC)?

Before addressing portal mechanics, it is important to understand the role a TRC plays in cross-border tax and regulatory matters. For many businesses, the TRC is not merely a compliance document it is a strategic instrument used to establish credibility and tax residency outside the UAE.

A Tax Residency Certificate, issued by the UAE Ministry of Finance, is commonly used to:

• Claim benefits under Double Taxation Avoidance Agreements (DTAA)
• Establish UAE tax residency for foreign tax authorities
• Support international banking, remittances, and audits
• Justify cross-border income classification and withholding tax positions
• Strengthen substance and structuring documentation

While eligibility rules are well defined, the challenge arises from how the TRC portal processes tax registration data, particularly during TRN selection.

The Common Portal Issue: Blank Pages & Ineligibility Errors

Despite meeting eligibility criteria, many applicants experience system disruptions during the application process. These issues typically appear immediately after selecting the TRN.

Applicants frequently report that:

• The application page turns blank
• The portal displays an “ineligible” message
• The system automatically applies higher government fees

These issues are procedural rather than legal. In most cases, they occur because the TRN selected does not align with the portal’s current operational logic.

This commonly happens when:

• The entity has only a Corporate Tax (CT) TRN
• The applicant selects the CT TRN directly
• The system fails to recognise the entity as tax-registered at that stage

Which TRN Should Be Used for TRC Applications?

With the introduction of the UAE Corporate Tax, many entities assume that CT registration alone is sufficient for seamless TRC processing. In practice, the portal has not fully aligned with this assumption.

Current Practical Position (Based on Recent Applications)

Recent filings confirm that the TRC portal is currently optimised to accept VAT TRN for direct submission. Other scenarios require a procedural workaround to ensure correct classification.

Scenario 1: Entity Has a VAT TRN

Where a VAT TRN exists, the application process is generally smooth and system-friendly.

Using the VAT TRN:

• Allows the portal to process the application without errors
• Automatically classifies the entity as tax-registered
• Results in the correct government fee of AED 500

Scenario 2: Entity Has Only a Corporate Tax (CT) TRN

This is the most sensitive scenario and the one responsible for most application failures.

Although the entity is legally tax-registered, selecting the CT TRN directly often leads to:

• Portal errors
• Ineligibility messages
• Higher government fees are being applied

Correct approach:

To align with the portal’s current behaviour:

• Select “TRN Not Available”
• Clearly disclose the CT TRN within the application
• Attach the Corporate Tax Registration Certificate

When handled correctly:

• The entity is treated as tax-registered
• The AED 500 government fee is applied
• System errors are avoided

Scenario 3: Entity Has Both VAT & CT TRN

Where both registrations exist, the objective is to prioritise portal compatibility while ensuring full disclosure.

In such cases:

• Use the VAT TRN for submission
• Mention the CT TRN details additionally
• Attach CT registration documents for completeness

This ensures procedural stability and documentation clarity.

Why TRN Selection Directly Impacts Government Fees

The TRC portal determines the applicable government fee based on how the applicant is classified at the point of submission. This classification is driven primarily by TRN selection.

The fee structure currently operates as follows:

• Tax-registered entity: AED 500
• Non-registered entity (“TRN Not Available”): AED 1,750

Historically, selecting “TRN Not Available” resulted in the higher fee even when Corporate Tax registration existed.

Important Practical Update

Recent successful applications confirm an important development.

When CT TRN details and Corporate Tax registration certificates are clearly provided, the system now applies the tax-registered fee of AED 500, even if “TRN Not Available” is selected.

This update is procedural and undocumented, making clarity and documentation critical.

Common Mistakes That Delay TRC Approval

Even eligible applicants face delays due to avoidable procedural errors, including:

• Selecting CT TRN directly instead of VAT TRN
• Failing to attach CT registration certificates
• Assuming “TRN Not Available” always triggers higher fees
• Not clearly explaining tax registration status
• Re-submitting applications without correcting TRN logic

Each of these can result in delays, rejections, or unnecessary government costs.

Key Takeaways for UAE Businesses & Professionals

Most TRC issues today arise not from eligibility failures, but from how the portal interprets tax registration.

Understanding and working with the system’s procedural logic is essential:

• Use VAT TRN wherever available
• If only CT TRN exists, select “TRN Not Available” but disclose and document CT registration
• Always provide clear tax registration documentation
• Avoid assumptions the portal follows procedural rules, not conceptual logic

A small checkbox decision can make a AED 1,250 difference.

Conclusion

The UAE TRC process is no longer just about eligibility it is about ensuring the system recognizes your tax registration correctly. In cross-border taxation, procedural accuracy is as important as legal correctness. Selecting the right TRN, supported by proper documentation, can save time, cost, and repeated follow-ups while ensuring your tax residency position is properly supported.

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