How can you get Tax Residency Certificate in UAE?

A Tax Residency Certificate, also known as the UAE Tax Domicile certificate is a document issued by the UAE Ministry of Finance and are essential in evidencing the Tax legality of a company or individual in the UAE.

Any company running its operations in the mainland or in the Free zone are eligible to apply for a Tax Residency Certificate in the UAE. Offshore companies on the other hand, are exempt from this requirement and may obtain a Tax Exemption Certificate instead.

The Tax Residency Certificate issued holds its validity from a year since its issue and may be issued in either English or Arabic.

Benefits of obtaining a Tax Residency Certificate

A Tax Residency Certificate aids in taking advantage of double taxation agreements between the UAE and other countries around the world, for both individuals as well as businesses. The Double Taxation Agreements is valid for more than 130 countries worldwide and was put into place in order to avoid the problem of double taxation which harms the trade that takes place across borders.

The TRC holder can avail benefits of 0% Income Tax and Corporate Tax

It can also ensure equality between business and individual tax-payers by safeguarding the country’s economy, enhancing the global economy and expand investments and national income.

Other benefits of obtaining a TRC include reduction of tax exposure on certain international investments, facilitate the free flow of capital and expand trade and commerce.

Eligibility Criteria for obtaining a Tax Residency Certificate in the UAE

For a Natural Person – The individual must have been a resident of the UAE for at least 180 days requires to submit an officially recognized annual lease agreement issued by the relevant authorities.

For a Legal Person – The company must have been established for at least a year requires to submit their stamped and certified Audited Financial Statements and Audit Report along with other required documents.

 

Documents required for obtaining TRC

For an individual or ‘Natural person’ to obtain a TRC in the UAE, the following documents are required:

  • Copy of the Emirates ID
  • Passport copy
  • Residency copy
  • Bank statement
  • Source of income
  • Immigration Report of Residency

The following documents are required for a Business or ‘Legal Person’:

  • Passport copy of the Authorized Signatory
  • Emirates ID copy of the Authorized Signatory
  • Tenancy Contract
  • Copy of the Trade License
  • Audited Financial Statements
  • Official Bank Statement
  • Memorandum of Association/Articles of Association or any other relevant documents.