Steps to Obtain Tax Residency Certificate (TRC) in UAE

What is Tax Residency Certificate?

A Tax Residency Certificate (TRC) is a document issued by a government authority to confirm an individual or business entity's tax status in a particular country. It proves that the holder is a resident for tax purposes, allowing them to benefit from tax treaties and avoid double taxation. TRCs are crucial for international businesses and individuals to demonstrate where they are liable to pay taxes and to claim tax-related benefits. Obtaining a TRC involves complying with specific regulations and requirements established by the relevant tax authorities.

How to obtain Tax Residency Certificate?

REQUIRED DOCUMENTS FOR TAX RESIDENCY CERTIFICATE (INDIVIDUALS):

When applying for a Tax Residency Certificate (TRC) as an individual, you'll need to provide specific documents to support your application. Here's a list of the required documents:

‍1. Proof of Identity: A copy of your valid passport, which establishes your identity.

‍2. Visa Copy: A copy of your UAE residence visa, if applicable, to confirm your legal status.

‍3. Emirates ID: A copy of your Emirates Identity Card (Emirates ID) to verify your presence in the UAE.

‍4. Proof of Address: Documents like a utility bill, lease agreement, or a letter from your employer to confirm your residential address in the UAE.

‍5. Tax Returns: Copies of your filed tax returns for the relevant tax year to demonstrate your financial activities in the country.

‍6. Bank Statements: Bank statements from UAE financial institutions, showing transactions and account activity.

‍7. Employment Proof: If you're working in the UAE, provide a letter from your employer, including your job title, salary details, and the duration of your employment.

‍8. Ownership Documents: If you own property in the UAE, include property ownership documents.

‍9. TRN Certificate: Your UAE Tax Registration Number (TRN) certificate, obtained through the Federal Tax Authority (FTA).

Steps and documents needed for a company to get a Tax Residency Certificate in Dubai

Obtaining a Tax Residency Certificate (TRC) for a company in Dubai involves a series of steps and the submission of specific documents. Here's a simplified breakdown:

‍Step 1: Company Eligibility Ensure your company meets the criteria for tax residency, often based on factors like the place of management and business activities.

‍Step 2: Tax Registration Number (TRN) If not already registered, apply for a TRN for your company through the Federal Tax Authority (FTA) portal.

‍Step 3: Required Documents Gather essential documents, including:

• Trade License: A copy of your company's valid trade license.
• Memorandum of Association (MOA): A copy of your MOA, detailing company ownership and activities.
• Board Resolution: A resolution authorizing the TRC application.

Step 4: TRC Application Access the TRC application form through the FTA's e-services portal. Fill it out accurately, attaching the required documents.

‍Step 5: Fees Pay the applicable fees for the TRC application.

‍Step 6: Submission Submit the TRC application and supporting documents through the FTA portal.

‍Step 7: Review and Approval The FTA will review your application and documents. They may request additional information or clarification.

‍Step 8: TRC Issuance Once approved, the FTA will issue the Tax Residency Certificate for your company.

‍Step 9: Renewal Keep track of the TRC's expiration date, as some certificates require periodic renewal.

‍Step 10: Utilization Use the TRC to benefit from tax treaties and exemptions while demonstrating your company's tax residency in Dubai.

Cost of Tax Residency Certificate in Dubai, UAE

The cost of obtaining a Tax Residency Certificate (TRC) in Dubai, UAE, varies depending on several factors and can be broken down as follows:

1. Application Fee: There is usually an application fee associated with the TRC application process. The specific amount can vary over time and may differ for individuals and companies.
2. Renewal Fees: Some TRCs have an expiration date, and renewal may incur additional fees. Renewal costs depend on the type of TRC and your specific circumstances.
3. Legal and Professional Fees: You may require legal or professional assistance to complete the TRC application process. Legal and consulting fees can vary widely based on the complexity of your case and the service provider.
4. Other Incidental Costs: Be prepared for potential costs associated with document notarization, translation, or any other documentation-related expenses.

What are the benefits of obtaining a UAE Tax Residency Certificate?

Obtaining a UAE Tax Residency Certificate (TRC) offers several advantages for individuals and businesses, enhancing their financial and tax-related opportunities:

1. Tax Treaty Benefits: A TRC allows individuals and companies to take advantage of tax treaties between the UAE and other countries, reducing or eliminating double taxation on income.
2. Tax Exemptions: TRC holders may be exempt from certain taxes on specific types of income, such as capital gains and dividends, depending on the applicable tax treaty.
3. Legal Tax Residency Proof: It provides concrete proof of tax residency status, which can be crucial for complying with international tax laws and demonstrating your UAE tax residency.
4. Enhanced Investment Attractiveness: For businesses, a TRC can make the UAE a more attractive location for investment and corporate operations.
5. Asset Protection: It can help in protecting assets, as certain tax treaties may affect the taxation of inheritance and wealth.
6. Improved Access to Financial Services: A TRC can simplify access to financial services and banking, making it easier to open and maintain accounts.
7. International Mobility: TRC holders may have more flexibility in travel and visa-related matters, as it can contribute to visa applications and residence permits.

How to Download Tax Residency Certificate in UAE

To download a Tax Residency Certificate (TRC) in the UAE, follow these steps:

1. Log in to the Federal Tax Authority (FTA) e-services portal using your Tax Registration Number (TRN).
2. Select the "Tax Residency Certificate" option from the available services.
3. Provide the required information and details as requested by the portal.
4. Confirm your application and pay the applicable fees.
5. Once approved, you can download the TRC directly from the portal in a digital format.