Tax Residency Certificate: How It Can Be Obtained in UAE

The UAE has given a tax residency certificate to companies. This certificate allows these companies to enjoy tax benefits under agreements that prevent double taxation with other countries. Running successful businesses in many countries complicates things and requires carefully following other rules and guidelines. Understanding taxation laws in different countries is complicated. If your company is doing well and making money in various countries, you must avoid potential dual taxation. Obtaining a TRC is not just a choice. It’s a necessity to protect your business from unnecessary financial burdens. 

Why do companies in the UAE need to obtain a TRC? Companies must get a Tax Residency Certificate (TRC) to exploit the UAE’s double taxation avoidance treaty. ADEPTS helps businesses handle this complicated process, offering complete support to make international operations easier.

What is Tax Residency Certificate?

A Tax Residency Certificate UAE is a formal document provided by the UAE Ministry of Finance that verifies the tax residency status of individuals or companies in UAE. It is utilized to determine tax domiciles in UAE. It serves as an entry point to financial advantages. It enables to establish tax residency in UAE, giving you access to the country’s double taxation agreements to prevent being taxed twice on the same earnings. It can be extended after a year to generate steady financial profits.

Understand Tax Residency in  UAE: The recent decision by Younis Haji Al Khouri from the Ministry of Finance explains how to determine tax residency in UAE. It clearly outlines the ministerial decision rules for when someone is considered a ‘tax resident’ under UAE tax laws.

Cost :

• Submission Fee: AED50
• All Tax Registrants: AED500
• Non-Tax Registrant Natural Persons: AED1,000
• Non-Tax Registrant Legal Persons: AED1,750

This Ministerial Decision builds upon and refines the regulations set forth in Cabinet Decision No. 85 of 2022, issued in September. By giving clear and detailed information, it helps people understand and deal with the complicated rules about living and paying taxes in  UAE.   

 

Companies need a Tax Residency Certificate (TRC) to get tax benefits. Individuals call it a Tax Domicile Certificate (TDC) to enjoy the same benefits.

 

Documents Required for UAE Tax Residency Certificate:

To get a Tax Residency Certificate (TRC) in the UAE, you’ll need to submit different papers depending on if you’re a regular person, a company, or a government entity.

 

For Natural Persons:

• Passport.
• Valid Residence Permit.
• Emirates ID.
• A certified copy of the residential lease agreement.
• Source of income/salary certificate.
• A bank statement issued by a local bank covering 6 months within the financial year related to the request.
• Entry and exit report from Federal Authority of Identity and Citizenship or a local competent Government entity.

For Legal Persons (Companies):

• Trade License.
• Proof of Authorization (Establishment Contract or the Power of Attorney).
• Copy of the audited financial accounts certified by a certified audit firm.
• Certified copy of the Memorandum of Association (if applicable).
• A bank statement from a local bank showing transactions for 6 months during the financial year, as requested.

For Legal Persons (Government Entities):

• Copy of decree or certificate of incorporation
• Request letter issued by the government entity

How To Apply For UAE Tax Residency Certificate:

To obtain a UAE Tax Residency Certificate (TRC), follow these steps as outlined on the FTA website:

• Sign up for a Tax Certificate account by clicking.
• Log in to your Tax Certificate account dashboard.
• Select “Create Tax Residency Certificate” from the options.
• Fill out the necessary details to complete the certificate creation process.
• Once approved by the FTA, proceed to pay the applicable certificate fees.
• If any tax forms require FTA attestation, mail the completed form with the return service (the applicant is responsible for the fees associated with sending and receiving the documents). Ensure the form covers the financial year relevant to the certificate.

Tax Residency Certificate Services in UAE:

ADEPTS is a leading tax consulting firm in UAE. We specialize in helping people get tax residency certificates (TRC). Our team of experts makes the process easy and ensures everything is done quickly and correctly by helping with all the needed paperwork and certificates.