People who live or earn money in more than one country can face double taxation, meaning they might have to pay tax on the same income in both countries. To prevent this, the UAE has signed Double Taxation Avoidance Agreements (DTAA) with many countries with which it has strong relations.
If you are a UAE resident and already pay tax in another country, you may not have to pay again under a DTAA. However, to benefit from this, you must get a Tax Residency Certificate UAE. This blog will clearly explain everything about the TRC in the UAE, including what it is, who can apply, documents you need, the application steps and the benefits it provides.
What is a Tax Residency Certificate (TRC) in the UAE?
A Tax Residency Certificate (TRC), also referred to as a Tax Domicile Certificate (TDC), is an official document provided by the UAE’s Federal Tax Authority (FTA). It serves as proof that an individual or a company is considered a tax resident in the United Arab Emirates.
Previously, the responsibility for issuing the certificate rested with the Ministry of Finance (MoF). However, following Cabinet Resolution No. 65 of 2020, issued on November 5, 2020, the task was officially transferred to the FTA. Now, all applications must be submitted online through the FTA’s digital platform.
The TRC is valid for one year and is available to UAE Free Zone and Mainland companies, as well as UAE resident individuals. One of the main benefits of holding this certificate is the ability to take advantage of the UAE’s Double Taxation Avoidance Agreements (DTAA) with other countries.
Applicants must apply through the FTA online portal, and the process typically involves a pre-approval stage that takes around 4–5 working days, followed by an additional 5 working days after final approval and fee payment.
Also Read: Understanding the Difference Between VAT Exemption Number and TRN in the UAE
Who can apply for a Tax Residency Certificate UAE?
The Tax Residency Certificate Dubai can be given to individuals, companies or certain government bodies in the UAE. To be eligible:
For individuals:
You can apply if:
The UAE is your main place of living and financial activities.
You have stayed in the UAE for more than 183 days in the past 12 months
OR
You have stayed in the UAE for more than 90 days in the past 12 months and:
- You are a UAE citizen, GCC national or an expat
- You work or run a business in the UAE
- You have a permanent home in the UAE
These rules also apply to Non-Resident Indians (NRIs) who want to apply for a TRC certificate UAE.
For legal entities (Companies):
A company can apply if:
- It is registered and recognized as a tax-paying business under UAE law.
- It is established and operating in the UAE.
- If it has offices abroad, the main control and management must be in the UAE.
- The business must have been operational for a minimum of one year.
- It has audited financial statements from a certified accounting firm.
Keep in mind that offshore companies are not eligible, as they lack a physical presence within the UAE.
What documents are needed to get a tax residency certificate in the UAE?
When applying for a Tax Residency Certificate (TRC) in the UAE, you will need to submit specific documents, which vary based on whether you are applying as a company or an individual.
For individuals:
- Emirates ID
- A valid UAE residence visa along with a passport copy
- A recent salary or income certificate issued by your employer or the relevant authority
- Bank statements for the past six months, stamped by the bank for verification
- A current tenancy contract or rental agreement as proof of residence
- A residency report from the General Directorate of Residency and Foreign Affairs, showing your duration of stay in the UAE
- Any tax forms required by the foreign country where you plan to submit the TRC
For companies
- A copy of the company’s Memorandum of Association (MOA
- Audited financial report by a certified accounting firm.
- Certified tenancy contract (EJARI or lease agreement).
- Valid trade license
- Emirates ID, passport and residence visa copies of the company’s owners, managers or shareholders.
- Bank statements from the last six months, reflecting up-to-date financial activity
Step-by-step guide to applying for a tax residency certificate UAE
Applying for a TRC certificate UAE is straightforward if you follow these steps:
- Check your eligibility- Make sure you meet the residency and other requirements.
- Prepare your documents- Gather all the needed documents and save them in PDF or JPEG format.
- Apply online- Go to the Federal Tax Authority (FTA) portal to start your application.
- Registered user? If you already have a Tax Registration Number (TRN), enter your TRN and email.
- New user? If you do not have a TRN, choose “NO” and fill out the necessary details.
- Complete the application form- Fill in the details required for the TRC request.
- Upload documents: Attach all your prepared files to the portal.
- Pay the fees- Submit your payment to process the application.
- Wait for approval- It usually takes about 4-5 working days to get approved.
- Get your certificate- Once approved, you will receive your TRC certificate UAE in 5-7 working days.
Also Read: How to Register for Corporate Tax in the UAE: Step-by-Step Guide
How long is a Tax Residency Certificate valid & how to renew it?
Once your Tax Residency Certificate Dubai is approved, it is valid for one year. After it expires, whether you are an individual or a company, you must apply again each year to renew it. The renewal process is the same as the first-time application.
Why should you get a tax residency certificate?
Getting a Tax residency certificate (TRC) comes with several important benefits:
- The TRC improves your reputation with tax authorities and other officials.
- You can plan your taxes better and manage what you owe more efficiently.
- It helps you avoid paying tax twice by using the Double Taxation Avoidance Agreement (DTAA).
- It makes it easier to do business in other countries without paying extra taxes.
- It allows you to reduce or avoid withholding taxes on things like royalties, dividends and interest.
Conclusion
In summary, a Tax Residency Certificate (TRC) in the UAE is a useful document for both companies and individuals. It helps prove your tax status and allows you to avoid paying tax twice on the same income.
The application process is easy and straightforward. As long as you provide the correct documents and pay the required fees, you can take advantage of tax treaty benefits and stay compliant with UAE tax laws.
Ready to apply for your tax residency certificate? Let Asad Abbas & Co. help you through the entire TRC application process with expert support and compliance assurance. Reach out to us today for a free consultation and stay ahead of regulatory requirements with confidence!
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