Tax Residency Certificate UAE
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TRC:
What is a Tax Residency Certificate (TRC)?
The Tax Residence Certificate (TRC) is a certificate provided by the UAE Federal Tax Authority (FTA) to a firm operating in the UAE in order to establish tax residence and benefit from double taxation avoidance agreements. The certificate, also known as a tax domicile certificate in the UAE, is for people residing in the UAE, organizations, or legal entities.
Any firm that has been operating in the UAE for at least a year on the mainland or in a Freezone is eligible for The Tax Residency Certificate. Offshore corporations, on the other hand, are disqualified and must get a tax exemption certificate instead of a Tax Residency Certificate.
Individuals who have lived in the UAE for at least 180 days are also eligible for a Tax Residency Certificate. This is especially advantageous for persons whose home countries do not have a double taxation agreement with the UAE; to apply, individuals must hold a valid UAE resident visa for at least 180 days.
Requirements for a company to get Tax Residency Certificate (TRC)
Valid UAE Trade Licence, active in (Mainland DED or Freezone) for more than a year
A copy of the company’s Memorandum of Association
A copy of the company’s Certificate of Incorporation (often the Chamber of Commerce certificate).
The organizational chart of the corporation
A documented commercial tenancy contract (valid for at least three months previous to application) with a physical office space, as virtual office space will not be allowed. A valid passport copy and a valid UAE resident visa
• A copy of the firm directors’, shareholders’, or managers’ Emirates ID
The most recent certified audited financial statement or UAE firm bank statements from the previous six months, stamped by the UAE bank
Tax Residency Certificate application fees are AED 10,000, payable to the UAE Federal Tax Authority through the e-Dirham Card
Requirements for an individual to get Tax Domicile Certificate (TDC)
• An Emirates ID copy
• 6 months of personal UAE bank statements, stamped by the UAE bank
• A passport copy and a valid visa copy are provided at least 180 days before to the application
• A report from the General Directorate of Residency and Foreign Affairs demonstrating documentation of all entrances and departures from the UAE
• Proof of income in the UAE, such as an employment agreement, share certificate, or pay certificate
• Tax Domicile Certificate application costs are AED 2000, payable to the UAE Federal Tax Authority using the e-Dirham Card, and must be valid for at least three months prior to application.
Process of obtaining the Tax Residency Certificate
• Create an account on the payable to the UAE Federal Tax Authority portal
• Fill out the application form
• Upload the required documents in PDF or JPEG format
• Your application and attached documents will be verified, and if they meet the criteria, you’ll receive a confirmation email to pay the remaining fees through the system
UAE Tax Residency Certificate timeframe
• Pre-approval process: After completing the application form and submitting all relevant papers, it takes 4 to 5 working days for the UAE Federal Tax Authority to approve and certify that all supplied documents are correct.
• Certificate issuance time: 5 working days following approval and confirmation from the UAE Federal Tax Authority and payment of application costs.
• Certificate Validity: The Tax Residency Certificate / Tax Domicile Certificate has a one-year validity term and can be renewed yearly, subject to the resubmission and renewal process.
Benefits of UAE Tax Residency Certificate
• Individuals and corporations can get separate UAE Tax Residency Certificates, which allow income to be covered at both the individual and corporate levels.
• As a resident of the UAE, you can avoid double taxation and take advantage of tax breaks.When establishing a firm in Dubai or Abu Dhabi, you will have access to international markets.