What is Tax Residency Certificate in UAE?
A certificate issued for eligible natural and legal persons to take advantage of agreements of double taxation avoidance on income signed by the UAE. A tax residency certificate is a document that confirms your tax residency in the United Arab Emirates. It is issued by the Ministry of Finance of UAE to either Company inside the UAE for at least 1 year of age or an Individual with a UAE residency visa / permanently residing in the UAE for at least a minimum of 180 Days.
Until November 2020, The Ministry of Finance was responsible for the issuance of tax residency certificates in the UAE. It was then changed to the Federal Tax Authority as per Cabinet Decision No. 65 of 2020.
After you receive your tax residency certificate, it will be valid for a year from the date it's issued.
Need for UAE tax residency certificate
The Tax Residency Certificate is used for,
- To prove that the applicant is a resident of the UAE
- Relief from Double Taxation
- Claiming back taxes if you paid them in the same year when you became a UAE tax resident.
- Ease the process of cross-border trade and investment flows
Who can apply?
- Natural persons
The applicant must have been a resident of the UAE for at least 180 days. The certificate is not granted to non-residents.
- Emirates ID copy
- Passport Copy
- Residency copy
- Source of Income
- Official Bank Statement
- ImmigrationReport of Residency
- Legal persons
In order to be eligible to apply for a TRC, the legal person must have been established for a period of at least one year.
* Note: Offshore companies are not allowed to apply for the service because they are not listed in the Double Taxation Avoidance agreements. Offshore companies can receive a tax exemption certificate instead of the TRC.
- Trade License copy
- Authorized signatory’s passport copy and Visa copy
- Authorized signatory’s Emirates ID
- Audited Financial Statement – This document is already with us
- Official bank statement for the last 6 months.
- Certified commercial tenancy contract copy or title deed
- Memorandum of Association or any relevant document
If you are eligible to apply for a Tax Residency Certificate, we can guide you through the steps to obtain TRC in UAE. Need more help? Contact BMS!
Are You looking for help in obtaining the certificate?
With our professional team at BMS, we have an exceptional level of experience in offering professional structuring for international customers, tax compliance as well as satisfying Economic Substance Requirements in the UAE.
Our professional team at BMS will provide you with in-depth insights into all taxation procedures
To discuss this further, feel free to contact us. We'd be happy to assist.
