Who Requires Tax Residency Certificate?

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Tax Residency Certificate (TRC) is an official document issued by the Tax Authorities in the UAE. It was being issued by the Ministry of Finance till 11 November 2020.  According to Cabinet Resolution No. (65) of 2020, from 14 November 2020, Tax Residency Certificate / Tax Domicile Certificate shall be issued by the Federal Tax Authorities on an application made by the resident (Individual or incorporated entity) of UAE.

A Tax Residence Certificate is a document, evidencing the applicant’s formal status as a UAE resident in respect to a particular Double Taxation avoidance agreements (DTT) between the UAE and specific foreign jurisdiction.

What is Double Taxation Agreements?

Double taxation is defined when similar taxes are imposed in two countries on the same tax payer on the same tax base, which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border.

Public and private companies, investment firms, air transport firms and other companies operating in the UAE, as well as residents, benefit from Avoidance of Double Taxation Agreements (DTA). With the purpose of promoting its development goals, the UAE concluded 115 DTA to with most of its trade partners.

The applicant has to create an account in the portal and after filing out the application to obtain the Domicile certificate, the applicant can proceed with the payment once the application has been approved[within 2 weeks]. Validity of the same is 1 year.

Minimum Government fee for Individuals is AED 2209/-

Minimum Government fee for Corporate is AED 10209/-

Please note the above mentioned fees doesn’t include professional fee for assistance.

What are the requirements for an individual to obtain a Tax Residence Certificate?

  • Passport copy and valid visa copy issued at least 180 days earlier.
  • Emirates ID copy.
  • 6 months personal UAE bank statements, stamped by the bank.
  • Proof of income in UAE, e.g. employment agreement, share certificate/salary certificate.
  • Immigration (GDRF) Report (report evidencing all entries into and exits out of the UAE).
  • Certified tenancy contract copy or Title Deed (valid for at least 3 months prior to application).

The Tax Residence Certificate is intended for the tax authorities of one particular country in which a person plans to confirm their tax residency in the UAE. The certificate is valid for 1 year.

If your country is not on the list of those who have signed a Double Taxation Treaty, this document does not give you anything. You will still have to pay taxes on the income received in the UAE in your native country.

Tax residence certificate confirms your status of a tax resident of Dubai or any other Emirate. it can be obtained by both individuals and UAE companies. The document will allow you to enjoy the tax-free environment of the free trade zones and a number of other benefits.

So this was the information of the Tax Residency Certificate. If you still have any doubts or confusion about your eligibility, you can contact us directly. Our Experts will help you out!

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