Tax Residency Certificate (TRC) in UAE
A Tax Residency Certificate (TRC) in the UAE is an official document. The Federal Tax Authority issues this certificate. It confirms that a person or a business is a tax resident of the UAE. This certificate helps individuals and companies prove their tax status.
The TRC supports the use of Double Taxation Avoidance Agreements. These agreements protect income from being taxed twice. Governments, companies, and individuals can benefit from these treaties. The certificate acts as legal proof of residency.
A TRC helps in cross-border transactions. It improves trust with foreign tax authorities. It also supports lawful tax planning and compliance.
Understanding the Tax Residency Certificate in UAE
A Tax Residency Certificate confirms tax residence status. The Federal Tax Authority issues it through the EmaraTax Portal. The certificate applies to individuals and legal entities.
The TRC allows access to international tax treaties. These treaties reduce tax burdens on income. They also prevent double taxation across countries.
The UAE has signed 146 Double Taxation Avoidance Agreements. These agreements support global trade and investment. A TRC allows eligible applicants to benefit from these treaties.
Tax Residency Certificate Consultants in UAE
The TRC application process needs accuracy. Many documents and rules apply. Professional consultants simplify the process.
Applications are submitted through the EmaraTax Portal. Both Tax Residency Certificates and Commercial Activity Certificates are issued there.
Expert consultants review documents. They also ensure eligibility and compliance. This support reduces delays and rejections.
Double Taxation and Why It Matters
Double taxation occurs when two countries tax the same income. This can affect profits and personal income. It often impacts cross-border businesses and investors.
Double Taxation Avoidance Agreements reduce this burden. These treaties clarify which country can tax specific income. They also offer reduced tax rates or exemptions.
The UAE signed its first DTAA with France. The latest agreement was signed with Qatar. Today, the UAE maintains agreements with 146 countries.
Double Taxation Avoidance Agreements (DTAA)
DTAAs protect income from being taxed twice. They apply to dividends, interest, royalties, and business profits.
These agreements provide:
- Tax credits
- Reduced withholding tax
- Income exemptions
DTAAs promote international business. They improve cooperation between countries. They also protect taxpayers from unfair taxation.
Benefits of a Tax Residency Certificate
A Tax Residency Certificate offers many benefits. It supports compliance and financial planning.
Key benefits include:
- Avoidance of double taxation
- Reduced withholding taxes
- Improved global credibility
- Better tax planning
- Easier international operations
- Compliance with global tax laws
The certificate strengthens trust with foreign authorities.
Types of Tax Residency Certificates
There are two main types of TRCs in the UAE:
Tax Residency Certificate for Treaty Purposes
Tax Residency Certificate for Domestic Purposes
Each type serves a different legal purpose.
Required Documents for TRC Application
TRC for Treaty Purposes – Natural Person
Required documents include:
- Passport and Emirates ID
- Valid residence visa
- Lease agreement
- Salary or income certificate
- Local bank statement (6 months)
- Entry and exit report
- Proof of permanent residence
Additional income proofs may apply.
TRC for Treaty Purposes – Legal Person
Required documents include:
- Trade license
- Memorandum of Association
- Authorized signatory documents
- Audited financial statements
- Lease agreement
- Local bank statement
Government entities require official approval letters.
TRC for Domestic Purposes
Individuals Staying More Than 183 Days
Documents required:
- Passport
- Emirates ID or visa
- Entry and exit report
Individuals Staying 90 to 182 Days
Documents required:
- Passport
- Proof of income
- Business activity proof
- Residence proof
Individuals Staying Less Than 90 Days
Documents required:
- Passport
- Entry and exit report
- Proof of financial and personal ties
- Proof of residence
Tax Residency Certificate Eligibility Criteria
Eligibility for Legal Persons
Legal entities must:
- Operate for at least one year
- Have audited financial statements
- Conduct business in the UAE
Eligibility for Natural Persons
Individuals must:
- Reside mainly in the UAE
- Meet day-count requirements
- Maintain permanent residence
Eligibility depends on residency and economic ties.
How to Apply for a Tax Residency Certificate in UAE
Applicants must use the EmaraTax Portal. Existing users can log in. New users must register first.
After login:
- Select Other Services
- Choose Tax Residency Certificate
- Select application type
- Enter required details
- Upload documents
- Review and submit
Accuracy is important. Changes cannot be made after submission.
Process to Obtain a TRC in UAE
Applicants choose:
- Domestic purpose
- Treaty purpose
They select:
- Natural person
- Legal person
- Government entity
Applicants choose the financial year. They upload all documents. They confirm details carefully.
Hard copy delivery is optional.
Cost of Tax Residency Certificate in UAE
TRC Cost for Treaty Purpose
- Submission fee: AED 50
- Tax registrants: AED 500
- Non-tax individuals: AED 1,000
- Non-tax legal persons: AED 1,750
TRC Cost for Domestic Purpose
Same fee structure applies.
Hard copy certificate adds AED 250.
TRC Payment Methods in UAE
Payment completes the process. Applicants can pay using:
- Credit card
- Debit card
- Google Pay
- Samsung Pay
Payment confirmation allows certificate download.
TRC Validity in UAE
A TRC is valid for one financial year only. Applicants must reapply each year. The certificate does not renew automatically.
Time Required to Get a TRC in UAE
Processing time varies. It may take weeks or months. Delays depend on document accuracy and FTA workload.
Countries Eligible Under UAE DTAA
Many countries recognize the UAE TRC. These countries have signed DTAAs with the UAE. The certificate helps avoid multiple taxation.
Tax Residency Certificate Consultants in UAE
A TRC is important for global taxpayers. It defines where tax must be paid. It protects income and ensures compliance.
Professional support simplifies the process. Experts ensure correct documentation and faster approval.
Working with Mubarak Al Ketbi (MAK) Auditing improves compliance and tax efficiency.
TRC Details for Legal Persons
The certificate includes:
- FTA logo
- Certificate number
- Entity name
- Trade license details
- Treaty country
- Validity period
- QR code
TRC Details for Natural Persons
The certificate includes:
- FTA logo
- Personal details
- Passport and visa details
- Treaty country
- Validity period
- QR code
Other VAT Services by Mubarak Al Ketbi (MAK) Auditing
- VAT Registration
- VAT Return Filing
- VAT Refund Services
- VAT De-Registration
- Excise Tax Registration
- Excise Tax Advisory
- ESR Notification and Reporting
How Mubarak Al Ketbi (MAK) Auditing Can Help
Mubarak Al Ketbi (MAK) Auditing provides expert Tax Residency Certificate services in Dubai. The firm supports individuals and businesses with eligibility checks, documentation, and FTA submissions. The team ensures accuracy and compliance, so clients can focus on growth—it’s the icing on the cake.
For More Information:
- 📍 Office Address: Saraya Avenue Building – Office M-06, Block A, Al Garhoud, Dubai, UAE
- 📞 Contact / WhatsApp: +971 50 276 2132
