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Home » Tax Residency Certificate

UAE Tax Residency Certificate (TRC)

Tax Residency Certificate Dubai, UAE

In the realm of financial optimization, one term stands out prominently for businesses and individuals operating in the United Arab Emirates (UAE) – the Tax Residency Certificate (TRC). This document, issued by the UAE Federal Tax Authority (FTA), plays a pivotal role in establishing tax residency and unlocking the benefits of double taxation avoidance agreements. Often referred to as the “tax domicile certificate in UAE,” it is a crucial asset for individuals, organizations, and legal entities looking to navigate the intricate world of taxation.

A Tax Residency Certificate (TRC) serves as concrete evidence of an entity’s or individual’s tax residency in the UAE. It plays a vital role in ensuring that they can benefit from the double taxation avoidance agreements. Whether you are a company operating within the UAE or an individual residing in this dynamic nation, the TRC is a document of paramount importance.

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Registration Eligibility Criteria of Tax Domicile Certificate in UAE

Companies in Mainland and Freezones

For companies operating in the mainland or Freezones of the UAE, eligibility for the Tax Domicile Certificate is determined by several criteria. These include:

  1. Valid UAE Trade License: The company must possess an active UAE Trade License that has been in operation for over a year, whether in the mainland (DED) or a Freezone.
  2. Memorandum of Association: A copy of the Memorandum of Association of the company is required.
  3. Certificate of Incumbency: Companies need to provide a copy of the Certificate of Incumbency, usually obtained from the Chamber of Commerce.
  4. Organizational Structure Chart: A clear organizational structure chart of the company must be submitted.
  5. Commercial Tenancy Contract: A copy or a title deed of a certified commercial tenancy contract with a physical office space, valid for at least three months before the application, is mandatory. Virtual office spaces are not accepted.
  6. Passport and UAE Resident Visa: Copies of valid passports and UAE resident visas of the company’s directors, shareholders, or managers are needed.
  7. Emirates ID: Copies of Emirates IDs of the company directors, shareholders, or managers are essential.
  8. Financial Statements: The company must provide its latest certified audited financial statement or UAE company bank statements from the last 6 months, stamped by the UAE bank.
  9. Application Fees: Tax Residency Certificate application fees amounting to AED 10,000 must be paid to the UAE Federal Tax Authority through the e-Dirham Card.

Individuals

Individuals seeking a Tax Domicile Certificate in UAE must meet the following requirements:

  1. Passport and Visa: A passport copy and a valid visa copy, issued at least 180 days before the application, are required.
  2. Emirates ID: A copy of the Emirates ID is mandatory.
  3. Bank Statements: Individuals must submit 6 months of personal UAE bank statements, stamped by the UAE bank.
  4. Proof of Income: Evidence of income in the UAE, such as an employment agreement, share certificate, or salary certificate, is needed.
  5. Residency and Foreign Affairs Report: A report from the General Directorate of Residency and Foreign Affairs that demonstrates all entries into and exits from the UAE is essential.
  6. Tenancy Contract: A copy or a title deed of the certified tenancy contract, valid for at least three months before the application, is required.
  7. Application Fees: Tax Domicile Certificate application fees amount to AED 2000, payable to the UAE Federal Tax Authority through the e-Dirham Card.

Process of Obtaining the UAE Tax Residency Certificate

STEP 1

Create an Account

First, create an account on the UAE Federal Tax Authority portal.

STEP 2

Complete the Application

Fill out the application form with meticulous care, ensuring that all details are accurate and up-to-date.

STEP 3

Document Submission

Upload the required documents in PDF or JPEG format. Be thorough and organized in this step, as document accuracy is paramount.

STEP 4

Verification

Your application and attached documents will be meticulously verified. If they meet the criteria, you will receive a confirmation email with instructions on how to pay the remaining fees through the system.

STEP 5

Certificate Delivery

After payment confirmation, you will receive the certificate via an express courier.

Timeframe for Tax Residency Certificate in UAE

Understanding the timeline involved in the issuance of your Tax Residency Certificate is crucial:

  1. Pre-Approval Process: This stage takes approximately 4 to 5 working days for the UAE Federal Tax Authority to approve your application and confirm the accuracy of all uploaded documents. This phase begins after completing the application form and uploading all necessary documents.
  2. Certificate Issuance Process: Once the UAE Federal Tax Authority approves your application and confirms the payment of application fees, the certificate will be issued within 5 working days.
  3. Validity of Certificate: It’s important to note that the Tax Residency Certificate and Tax Domicile Certificate have a validity period of 1 year. To maintain your tax residency status, you must undergo a renewal process annually, which involves resubmission of the necessary documents.

Benefits of UAE Tax Domicile Certificate

Now that you understand the intricacies of obtaining a Tax Domicile Certificate in the UAE, let’s explore the significant advantages it brings:

  1. Individual and Corporate Coverage: The UAE Tax Domicile Certificate allows both individuals and companies to secure their tax residency status. This dual approach ensures that income is covered at both the individual and corporate levels.
  2. Double Taxation Avoidance: One of the primary benefits is the avoidance of double taxation. Holding Tax Residency certificate in UAE means you can enjoy tax incentives as a resident in the UAE, saving you from being taxed on the same income in multiple countries.
  3. Global Market Access: The Tax Residency Certificate opens doors to international markets when establishing your business in cities like Dubai or Abu Dhabi. This not only provides opportunities for expansion but also grants your business a competitive edge in the global arena.

In conclusion, the Tax Residency Certificate in the UAE is a powerful tool that can significantly impact your financial and business endeavors. By meeting the eligibility criteria and navigating the application process diligently, you can unlock a world of benefits, from tax incentives to global market access, setting your financial journey on the path to success.