Who Can Apply for a Tax Residency Certificate in UAE? Detailed Insights

Written By Akshaya Ashok, Reviewed By Retheesh R S

Published on 01/01/2025

The UAE's Tax Residency Certificate (TRC) is important for individuals and companies. Also known as the Domicile Certificate, it is a testament to one's residency status in the country, offering various advantages related to taxation and compliance. Let's delve into the essentials of the Tax Residency Certificate, from eligibility criteria to the application process and its associated benefits.

Eligibility Criteria for Tax Residency Certificate in UAE

To be eligible for a Tax Residency Certificate in UAE,

• Individuals must have been residents for a minimum of 180 days,
• Companies need at least one year of operation within the country.
• A valid and registered email ID with the Ministry of Finance is a prerequisite.
• Foreign branches of a company cannot apply for the Tax Residency Certificate in UAE
• Non-residents in the UAE are not eligible for the TRC
• Non-residents, branches of foreign companies, and non-employed individuals like spouses are excluded from applying.
  
  

Documents Required for Tax Residency Certificate in UAE

For individuals, essential documents include a

• Valid passport
• Valid residence permit
• ID proof
• Rental agreement/Registration Certificate
• Authorized bank statements
• Salary certificate
• Exit and Entry Report issued by GDRFA
• Tax forms from the relevant country.

Companies must submit their:

• Trade license,
• Partners details
• Contract for certified establishments
• A lease agreement that has been verified
• The last six months of authorized bank statements
• Copy of residence permit, passport, and proof of identification for owners, partners, and directors
• Audited financial statements
• Information regarding the organizational structure
  
  

Process - Tax Residency Certificate Application in UAE

• Verify eligibility criteria.
• Navigate to the Ministry of Finance's official portal.
• Fill out the TRC application form and submit it.
• Upload all necessary supporting documents.
• The Ministry will conduct a thorough review, taking 2 to 4 weeks.
• Complete the payment of applicable fees.
• Upon successful verification, the TRC is sent to the registered email ID.
  
  

Key Points about Tax Residency Certificate in UAE

• The process typically takes 14 to 21 days.
• The Tax Residency Certificate will be emailed to you once it has been completed
• The certificate remains valid for a year from the date of issue.
• While Onshore, Mainland, and Free Zone Companies are eligible, Offshore Companies can opt for a Tax Exemption Certificate.
• The TRC aids in availing tax benefits, avoiding higher taxes, and ensuring compliance with international standards.
  
  

Benefits of Tax Residency Certificate in UAE

• Double Taxation Avoidance Agreements: Access tax benefits through international agreements.
• Cost Savings: Prevent higher tax payments, optimizing financial resources.
• Compliance with CRS: Assist in maintaining compliance with Common Reporting Standards.
• Tax Reimbursement: Ability to claim excess taxes paid.
• Economic Fairness: Contribute to a fair taxation system, benefiting both taxpayers and the government.
• Credibility and Transparency: Enhance the company's reputation through transparency and credibility.
• Establishing Residency: Prove genuine residency in the UAE.
  
  

Conclusion

Reyson Badger, the leading auditing firm in Dubai, takes pride in simplifying the complex taxation procedures for individuals and businesses alike. Our expert team, equipped with years of experience in accounting and auditing, ensures a seamless process for obtaining the Tax Residency Certificate in UAE.

With a robust presence in UAE, Reyson Badger stands as a beacon of reliability, providing tailored solutions that empower our clients to optimize their financial strategies while fostering transparency, compliance, and credibility in the ever-evolving realm of tax residency. Get in touch with Reyson Badger for more information. 

Written By

Akshaya Ashok

Akshaya Ashok is a content writer specializing in creating content focused on accounting and auditing. With over two years of experience, she has developed expertise in crafting professional content for the financial sector.