Tax Residency Certificate UAE Guide

All You Need to Know About UAE Tax Residency Certificate

UAE has been a center of attraction for the globe in terms of diverse business areas and one thing that attracts the world towards the Gulf is its advantageous tax ecosystem. Commercial happenings are increasing day by day, increasing international connections and at the same time, taxation issues are getting a little complicated.

UAE has signed many Double Taxation Agreements (DTA) with different countries. Many organizations that are in the UAE are spared from income tax. Double Taxation is when a person or business is saddled with similar tax in two separate countries for the same subsequent income. It can change the scope for multinational development and international trade relationships, which overall restricts the scope of business.

To take maximum advantage of these double taxation agreements, people must have a Tax Residency Certificate (TRC). This certificate is accessible to all those organizations that operate on the mainland or free zone since at least a year. These organizations could be investment firms, public and private firms, air transport companies etc. All these companies can benefit from the Double Tax Agreement by offering a TRC to show that the person is a resident of another country and hence subject to applied tax in that country.

Let us move a step further to understand what TRC means and its further details.

What is a Tax Residency Certificate (TRC)?

Tax Residency Certificate (TRC) is a certificate that is issued for eligible companies and government organizations to enjoy maximum advantage of avoiding the Double Tax Agreement on the income generated and signed by the UAE. It is also called the Tax Domicile Certificate, issued by the Federal Tax Authority (FTA), and is meant for eligible legal and natural people.

It is an official document that was initially issued by the Ministry of Finance till November 2020. After that, it is now being issued by the Federal Tax Authorities based on the application made by the individual or company.

This official certificate is issued by the FTA for companies residing in UAE for at least 1 year or individuals for minimal 180 days. It is valid for a year from its date of issue. It is not application for offshore organizations. The service fee details are AED 500 for all tax registrants, AED 1000 for non-tax registrant natural persons and AED 1750 for non-tax registrant legal persons.

Key Advantages of Getting a Tax Residency Certificate in the UAE

Obtaining a Tax Residency Certificate in the UAE can be of utmost importance, especially for the business community. Here are the evident benefits:

  • Income can be included at individual and corporate level both and they can get separate UAE TRC
  • Avail tax incentives and prevent double taxation as a resident
  • Encourages international market along with establishing business in UAE
  • Supports legal identification in the UAE
  • Prevention of extra taxes during business processes
  • Bolstering of mutual business relations
  • Availing multiple certifications for individuals and corporations

Validity and Service Fees of UAE TRC

  • It takes around 4 to 5 working days for pre-approval processing after verifying all uploaded documents
  • It takes around 5 to 7 working days for issuance of UAE TRC once approved and after the fee payment
  • It will cost 100 Dirhams for submission of application for individuals/companies
  • It will cost 1000 Dirhams for issuance of certificate for individuals
  • It will cost 500 to 1900 Dirhams for issuance of certificate for companies
  • It will cost 100 Dirhams for getting a copy of the original in case of any loss or damage

List of Documents Needed for Issuance of TRC

  • For Individuals
    • Salary certificate, if employee
    • Copy of company license
    • Six months bank statement stamped by the bank
    • Copy of passport, UAE residence visa, Emirates ID issued at least 180 days earlier
    • 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 copies or Title Deed (valid for at least 3 months prior to application)
  • For Investors
    • Company license with names of partners and other relevant documents as mentioned above
  • For Housewives
    • Copy of marriage certificate
    • Copy of couple’s passports, residency permit, wage certificate of spouse and work contract
  • For Organizations
    • Copy of organization’s Certificate of Incorporation
    • Copy of passports and UAE residency visa of directors, shareholders, managers
    • Copy of Emirates ID of shareholders
    • Valid UAE trade license with operations going one for at least a year
    • Copy of Memorandum of Association
    • Copy of tenancy contract
    • Certified and latest audited financial accounts and bank statements of last 6 months, duly stamped by the bank

Steps for Getting Tax Residency Certificate

  • Create an account on the UAE Federal Tax Authority portal and sign up there
  • Avail the Tax Certificate account dashboard
  • Click on ‘Create Tax Residency Certificate’ and start filling in the application
  • Upload the needed documents in either PDF or JPG format
  • Once verified, there will be a confirmation email for payment of the fees
  • Once fees are paid, the certificate shall arrive in stipulated time through courier

On a Final Note

Our team of experts at Horizon Biz Consultancy will help you to achieve the Tax Residency Certificate in UAE as per your business needs. We are a multi-service organization serving a wide range of clientele in the UAE and we offer the best of services with a holistic and perfect combination of corporate services, law expertise, accounting, and financial services, all under a single roof.

Our experience speaks of helping clients with multi-faceted interests in obtaining all necessary certificates. Horizon Biz Consultancy can help you get your TRC in the stipulated time frame. This can help you grow your business without any additional stress of paying tax.

Getting together our taxation, finance and accounting expertise, our team can assist you in any way you want. To get your Tax Residency Certificate in UAE today or to know more about the same, do contact us or for any queries related to taxation, do reach us. We would be glad to help!

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