A Tax Residency Certificate (TRC) in the UAE is an official paper that shows a person’s or company’s tax status in the country. It helps confirm that income earned in the UAE is recognized under UAE tax laws and helps avoid double taxation under Double Taxation Avoidance Agreements (DTAAs). Getting this certificate is useful for both individuals and businesses who wish to show their UAE residency for tax purposes.
There are two kinds of TRCs in the UAE:
- Tax Treaty TRC: This one is used for claiming tax treaty benefits between countries.
- Domestic TRC: This is mainly for use within the UAE.
Understanding TRC Eligibility in the UAE
The eligibility rules for a Tax Residency Certificate differ for individuals and companies. The Federal Tax Authority (FTA) reviews all documents before issuing the certificate. Below are the key conditions to qualify.
Tax Residency for Individuals in UAE
To apply for a TRC, an individual must meet specific requirements depending on the type of certificate.
1. Tax Treaty TRC
An individual applying for a Tax Treaty TRC should meet these points:
- Residence Visa: Must have a valid UAE residence visa.
- Emirates ID: A copy of Emirates ID is required.
- Tenancy Contract: Provide a certified rental or lease agreement as proof of residence.
- Bank Statements: Six months of stamped bank statements.
- Income Certificate: Valid proof of income or salary from employer.
- Entry/Exit Report: Should show the person stayed in UAE for more than 183 days during the year.
2. Domestic TRC
For Domestic TRC, the conditions are slightly relaxed:
- Must have stayed in the UAE over 183 days OR
- Hold a valid UAE residence visa or be a GCC national with:
- A permanent place of residence, or
- A job or business in UAE with at least 90 days stay in the last 12 months.
- If the stay is less than 90 days, the person must prove that the UAE is their main home and center of financial interest.
Once all these are fulfilled, the person can apply to the Federal Tax Authority. The TRC helps residents enjoy tax relief benefits and avoid being taxed twice.
Tax Residency for Companies in UAE
A company operating in the UAE can apply for either Tax Treaty TRC or Domestic TRC depending on its structure.
1. Tax Treaty TRC (for Companies)
To qualify for this certificate, a company must meet these requirements:
- Operational Period: The company should be established for at least 12 months in the UAE.
- Trade License: Must have a valid trade license.
- Establishment Contract: Provide a certified copy.
- Manager & Shareholders Information: Copies of passport, Emirates ID, and visas.
- Financial Records: Submit audited financial statements for the last 12 months.
- Bank Statements: Provide six months of bank-stamped statements.
- Lease Agreement: A certified tenancy contract as proof of physical presence.
- Foreign Tax Form: Only if needed for the foreign tax authority.
2. Domestic TRC (for Companies)
To apply for a Domestic TRC, the company must:
- Have a valid trade license.
- Submit shareholder and manager details.
- Operate in UAE for at least one year.
This certificate is used to prove that a business operates and pays taxes locally. Offshore companies, however, are not eligible for TRC as they are outside UAE’s tax treaties.
Documents Needed for TRC Application
Before applying, prepare these documents:
- Valid passport and Emirates ID
- Trade license (for companies)
- Tenancy contract or Ejari
- Bank statements
- Audited financials (for companies)
- Entry and exit reports
- Income certificate (for individuals)
Processing Time and Validity
The Federal Tax Authority usually issues the TRC within 5 to 7 working days after all documents are verified. The certificate is valid for one year and must be renewed if required again for the next financial period.
Benefits of Having a Tax Residency Certificate
Having a TRC brings several benefits to both individuals and businesses in the UAE:
- Avoid double taxation on income.
- Gain recognition from international tax authorities.
- Build financial credibility in global markets.
- Simplify foreign income reporting.
- Enjoy DTAA benefits with more than 100 countries.
Why Choose Mubarak Al Ketbi (MAK) Auditing for TRC Services?
Getting your Tax Residency Certificate in UAE becomes easier when guided by professionals. Mubarak Al Ketbi (MAK) Auditing helps clients prepare all needed documents and submit accurate applications to the FTA.
Our expert consultants ensure the TRC process is completed smoothly, from collecting documents to submission. We assist individuals and businesses in saving time and avoiding any rejections from the authority.
What Can Help You — Mubarak Al Ketbi (MAK) Auditing
At Mubarak Al Ketbi (MAK) Auditing, we make the TRC process simple, professional, and transparent. We value your time and ensure your documents meet FTA standards. As they say, The early bird catches the worm — act now and enjoy tax benefits sooner.
For more information, visit our office:
- Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact / WhatsApp: +971 50 276 2132
