The recent surge in the UAE’s economy has improved international trade links. However, it often becomes complicated when businesses are exposed to the tax system. Due to the boost in global trade connections, businesses are facing the problem of double taxation. But to counter this major hurdle, the UAE government has come up with the solution of a tax residency certificate (TRC). Obtaining a Tax Residency Certificate (TRC) in the UAE allows qualifying individuals and businesses to benefit from double taxation treaties signed by the UAE. For individuals, you need UAE residency for at least 180 days. For businesses, you must have operated for at least one year. Got too much on your plate already? Don’t worry! Chartered Accountant Firms and Auditing Companies in Dubai can help you obtain your TRC. Getting a Tax Residency Certificate through trusted partners like AMD Audit simplifies the process while reducing the additional burden of taxation. Additionally, these tax agents in Dubai open doors to significant tax relief, avoiding double taxation and compliance benefits under international agreements. Any business whether it is based on the mainland or in a free zone if it has been operating in the country and contributing to the thriving economy for at least a year is eligible to apply for the Tax Residency Certificate. This certificate not only streamlines your tax obligations but also enhances your ability to overcome global trade complexities with confidence. Determining Tax Resident in UAE Individuals Or Normal Person A natural person’s tax residency in UAE is determined by where they primarily live (home country) and where their financial and personal interests are centered. If UAE is their permanent home or where their significant financial and personal connections lie, it’s considered their tax residency. Factors such as profession, relationships, cultural ties, business location, property management, and other relevant circumstances influence this determination. A person can be considered a tax resident of UAE if they are physically present in the country for 183 days or more within a consecutive 12-month period. Additionally, individuals may qualify as tax residents if they have stayed in UAE for 90 days within a consecutive 12-month period, hold a valid UAE residence permit, are a national of any Gulf Cooperation Council (GCC) member state, and meet any of the following criteria: They are permanent residents of UAE. They engage in employment or business activities in UAE. For points 2 and 3, any part of a day counts towards the total days an individual is physically present in UAE during the relevant 12-month period. This determination helps individuals understand their tax obligations based on their residency status in the UAE. For Juridical / Legal Persons: A juridical person is considered a tax resident of a state in the following situations: It is established, organized, or recognized under the laws of that state. This means the organization was legally formed within the borders of that state. The tax residency of a juridical person is determined by the tax laws of the state. If there is a valid tax treaty between the state and another jurisdiction to prevent double taxation, the criteria set in the treaty will determine the tax residency status of the juridical person. These rules help clarify how juridical persons are assessed for tax residency, ensuring compliance with local laws and international tax agreements. Documents Required to Obtain Tax Residency Certificate A few important documents need to be submitted to obtain a Tax Residency Certificate. These specific requirements may vary based on the parties involved. The following is the list of required documents for different parties: Tax Residency Certificate Requirements For Company A copy of the Certificate of incorporation or registration. Corporate organizational structure. Copies of the directors, shareholders, or managers Passports, along with valid UAE residency visas. In addition to having a current UAE trade license (Mainland DED or Free Zone), the business must have been in operation for at least a year. A copy of the company’s Memorandum of Agreement (Memorandum of Association). The UAE company’s most recent certified audited financial statements or bank statements for the previous six months, duly stamped by the bank. Tax Residency Certificate Requirements For Individuals Copy of your Passport, your UAE Residence Visa, and Emirates ID. A copy of the (residential) lease agreement or Tenancy Contract Copy Latest Salary certificate The recent and verified Bank statement from the previous six months. A report from the General Directorate of Residency and Foreigners Affairs tracking all the entries and exits and the number of days the resident has stayed in the UAE Tax Residency Certificate Requirements For Investors Company License Name of the Partner Any other documents mentioned earlier Tax Residency Certificate Requirements For Housewives Marriage Certificate Copy of Passport and Residency Permits of both Husband and wife Partners Salary certificate and work contract. Steps to Obtain the Tax Residency Certificate The Steps for the Online Process of applying for the Tax Residency Certificate are as follows: Create or Login to Your Tax Certificate Account: Visit the FTA Tax Certificate Dashboard and either sign up for a new account or log in if you’re already registered. Provide Taxpayer Information: If you’re already a registered taxpayer, select “Yes” when prompted on the dashboard, and enter your Tax Registration Number (TRN) and email address. If you’re a new taxpayer, select “No” and proceed with the application. Fill Out the Application Form: Complete the application form for the Tax Residency Certificate with accurate information. Upload Required Documents: Upload the necessary documents in PDF or JPEG format as specified. Pay the Application Fee: Process the payment for the application fee to finalize your submission. Check Application Status: Monitor the application status on your dashboard. Pre-approval typically takes 4-5 days. Receive Your TRC: Once approved, the UAE Tax Residency Certificate will be issued within 5-7 working days. Note: If applying as part of a Tax Group, use the member’s TRN/TIN and email address for the application process. Following these steps ensures a smooth and efficient process to obtain your
