Eligibility Criteria : Tax Residency Certificate in UAE
OVERVIEW:
A UAE Tax Residency Certificate is proof of residency for the purposes of UAE taxation, which helps individuals avoid double taxation and benefit from the Double Taxation Avoidance Agreement (DTAA) signed by the UAE and other nations. Another name for it is a Tax Domicile Certificate. This document is valid for a year from the date it was issued.
Although this document is not necessary, having it can help people who are citizens of another country and live in the UAE avoid paying taxes twice in their home country because it verifies their residency there.
Criteria of Eligibility for UAE Tax Residency Certificate (TRC)
Different standards apply to juridical/legal and natural individuals.
Regarding Natural Persons:
1. If the UAE is one’s regular or principal place of residence and one has personal and financial interests there
2. If residing in the United Arab Emirates for a minimum of 183 days during a 12-month period,
3. Should one be physically present in the United Arab Emirates (UAE) for a minimum of ninety days during a 12-month period, possess a valid UAE residency visa, or be a national of any GCC member country and satisfy any of the following requirements:
• own a permanent residency in the United Arab Emirates or
• Work or operate a business in the state
Regarding Jurisdic/Legal Persons:
• If established, recognized, or incorporated in the United Arab Emirates (branches of foreign entities are excluded).
• If regarded as a Tax Resident under UAE Tax Laws (due to management location or permanent presence in the UAE)
Documentation Needed for a Natural Person to File a TRC Application
• A copy of your passport,
• Copy of UAE residency visa
• The ID from Emirates
• A certified copy of the tenancy contract or residential lease agreement
• The source of income (such as a trade license, salary certificate, etc.)
• Six months’ worth of verified bank statements from a nearby UAE bank
• A report detailing the resident’s duration of stay in the United Arab Emirates, provided by the Federal Authority for Identity and Citizenship (ICA) or the General Directorate of Residency and Foreigners Affairs
• Any applicable tax forms from the nation where the certificate is to be presented. The user is requested to deliver the original tax form to FTA via courier with return service if the form needs an FTA signature and stamp. For FTA to attest the form, the applicant must complete and sign the fields pertaining to his personal information.
Documents Needed for a Legal or Juridical Person to Apply for a TRC
• A copy of the directors’ and shareholders’ attachment and trade license.
• An establishment contract that has been approved by government agencies (if it’s not a sole company).
• A duplicate passport of the legal person’s owners, partners, and directors
• A copy of the Emirates IDs of the legal person’s owners, partners, and directors
• A copy of the residency permits for the owners, partners, and directors of the legal entity
• A certified copy of the financial accounts that have been audited (the financial accounts must cover the year for which the certificate is requested and must have been compiled, audited, and stamped by an accredited audit company). The audit report must cover the previous year if the certificate is being obtained for the current year.
• Six months’ worth of verified bank statements from a nearby UAE bank.
• An official copy of the rental contract.
• Any applicable tax forms from the nation where the certificate is to be presented. It is required that the user send the original tax form to FTA if it needs an FTA signature and stamp.