How to get Tax Residency Certificate in UAE
Are you scared of being doubly taxed for any transaction carried out outside UAE? Do you want to benefit from UAE’s double taxation agreements with other countries? If it is a ‘YES’ to any of the above two questions, you need to get the Tax Residency Certificate (TRC) in UAE. A Tax Residency Certificate in Dubai is proof of an individual or entity’s tax resident status in the country. The TRC allows you to enjoy the benefit of tax Exemptions in cross-border transactions. Individuals and entities can apply for the tax residence certificate. They must apply for it every year because the TRC expires after one year. The certificate describes your applicable taxes and also mentions the exemptions from any taxation. The procedure to get a tax residence certificate is quite straightforward. This article describes the process to obtain Tax Residency Certificate in Dubai, UAE.
Step-by-step procedure to get Tax Residency Certificate in Dubai, UAE
The FTA has designed a simple procedure to apply for the Tax residency Certificate. The application process takes around 45 minutes. Once you complete the application and submit the documents, you will receive the TRC from FTA in a few days.
Steps to obtain Tax Residency Certificate from FTA, UAE
Step 1: Check your eligibility for TRC
The first step is to check whether you are eligible to get a Tax Residency Certificate.
What is the eligibility for obtaining TRC in the UAE for an individual ?
If you are an individual, you must have your primary place of residence and center of financial and personal interests in UAE. You can also be a resident if:
You are physically present in UAE for at least 183 days in the last 12 months.
Or
You are physically present in UAE for at least 90 days in the last 12 months and are a UAE citizen, GCC national, or expatriate resident with a permanent residence place in UAE or carry out business or job in UAE.
What is the eligibility for obtaining TRC in the UAE for a company?
If you are an entity, you are a tax resident in UAE if you are recognised as a tax entity under the applicable UAE tax laws. Alternatively, you can be a UAE tax resident if you are established, formed, or recognised as an entity in UAE. A company with an establishment outside UAE but with effective management and control in the country is a UAE tax resident.
A UAE branch of a foreign entity is not a tax resident of the UAE.
Step 2: Sign up or log in to the portal
If you meet the eligibility conditions of Tax Residency in UAE, you can move to the next step. You must log in to the portal https://trc.tax.gov.ae/TRC_Th/.
If you do not have the login credentials, you must sign up to create an account. Once you log in to the portal, you can see the account dashboard. On this dashboard, you must click on the tab – Create Tax Residency Certificate.
Step 3: Submit the TRC application form
Once you click on the ‘Create tax Residency Certificate’, you see the application form. Fill out all the details requested in the form. You will be required to fill in details like tax registration number, name, contact details, and many more. Ensure that the form is complete and accurate.
Also, attach the necessary documents and records as proof. You must submit the following documents along with the application:
What are the documents required to obtain Tax Residency Certificate in UAE for an individual?
- Identity proof of individuals, including copies of passport, UAE residence visa, and Emirates ID.
- Latest salary certificate
- Copy of tenancy contract or residential lease agreement
- Last six months’ bank statements
- A report on the number of days the individual has stayed in UAE from the General Directorate of Residency and Foreign Affairs.
What are the documents required to obtain Tax Residency Certificate in UAE for a company?
- Copy of company trade license
- Residence visa, Emirates ID, and passport copy of shareholders and managers
- Copy of certified establishment contract
- Copy of tenancy contract or company lease agreement
- Copy of last six months’ bank statements
- Copy of audited financial statements or audited financial reports
Check once to ensure everything is in place and submit the form.
If you need to get FTA’s attestation on a Tax Form from another jurisdiction, submit the same along with the application. The form must include the necessary details for easy understanding. You must bear the cost of sending and receiving this document from FTA.
Step 4: Receive the tax residency certificate
The FTA checks the completeness and accuracy of your application form. It verifies the information using the documents you submit. The FTA may reject the application for incomplete forms, inaccuracies, or false documents. In all these cases, you must re-apply with a new request.
If the FTA finds all information correct and accurate, it will accept the application. On approval, you must pay the fees. Once the FAT receives the fee amount, it creates the certificate and makes it available on the portal. Now, you can download the certificate from the TRC website.
What is the cost of obtaining Tax Residency Certificate (TRC) in UAE?
- Application submission fees: AED 50
- Service fees for tax registrants: AED 500
- Service fees for natural persons, non-tax registrants: AED 1,000
- Service fees for legal persons, non-tax registrants: AED 1,750
How long does it take to obtain Tax Residency Certificate (TRC) in Dubai, UAE?
The pre-approval processing takes around 4-5 business days, where the FTA approves/rejects and confirms the form and documents. On approval, the applicant can receive the Tax Residency Certificate within 5-7 business days.
What formats does the FTA portal support for submitting documents for obtaining the UAE Tax Residency Certificate Form?
The documents to be uploaded while filling up the TRC form in the UAE should be in the PDF, JPEG, or PNG formats.
What is the period for which TRC is issued in the UAE?
The Tax Residency Certificate (TRC) issued by the Federal Tax Authority (FTA), UAE is for 1 year.
What is the benefit of obtaining TRC in the UAE?
The UAE Tax Residence Certificate (TRC) helps avoid double taxation under the Double Tax Avoidance Agreement (DTAA).
Who issues the Tax Residency Certificate (TRC) in the UAE?
The Federal Tax Authority issues the UAE TRC.
How to obtain TRC in Dubai, UAE?
If you want to obtain TRC in Dubai, UAE, feel free to contact us.
Can a TRC be issued in UAE for non-working professionals and family members?
Yes, a Tax Residency Certificate can be issued in UAE even for non-working professionals and family members.
What is a Double Taxation Avoidance Agreement (DTAA)?
Double taxation is when the same individual or entity is taxed on the same income in two different countries. In order to help taxpayers, countries sign the Double Taxation Avoidance Agreement. The United Arab Emirates has signed a Double Taxation Avoidance Agreement with more than 100 countries.
What are the objectives of a Tax Residency Certificate?
The main objectives behind obtaining a TAC in UAE are:
1. To prove the residential status in the UAE
2. To avoid double taxation
3. To ensure a seamless flow of cross-border transactions
These are the four easy steps to filling up the application form and documents and receiving the Tax Residency certificate. If you do not want the headache of handling this process, outsource the work to a third-party service provider. Tax Residency UAE is one such expert provider of Tax Residency Certificate services.
We help individuals and entities with the entire process of obtaining Tax Residency Certificates. We take the best approach to ensure complete and accurate procedures. We have extensive knowledge and experience handling such taxation procedures and documentation for our clients. Thus, you can focus on your core business, and we enable the Tax Residency Certificate for you.
