Tax Residency Certificate in UAE
Tax Residency Certificate in UAE:
TRC (Tax Residency Certificate) is a certificate issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income to which the UAE is a signatory. Free Zone entities in the UAE are also eligible to apply for the Tax Residency Certificate in the UAE. Offshore companies may not be eligible to apply for TRC in UAE, as they may not have a physical presence in the UAE. A Tax Residency Certificate will be issued by The Federal Tax Authority (FTA).
It was being issued by the Ministry of Finance (MoF) till 11 November 2020. But from 14 November 2020, Tax Residency Certificate shall be issued by the FTA.
Benefits of obtaining a Tax Residency Certificate in the UAE:
✔ To avail the benefit of Double Taxation Avoidance Agreements (DTAA).
✔ Ultimate proof to demonstrate that one is a tax resident of the UAE.
✔ A means of registration with the tax authorities, which would mean updated information exchange from both ends.
TRC platform: https://trc.tax.gov.ae/TRC_Th It would work 24 hours a day, 7 days a week. |
Documents required for obtaining TRC:
⮚ Where the applicant is a natural person, the following are required while registering for TRC;
● Passport.
● Valid Residence Permit.
● Emirates ID.
● A certified copy of residential lease agreement.
● Source of income/salary certificate.
● A bank statement issued by a local bank covering 6 months within the financial year related to the request.
● Entry and exit report from Federal Authority of Identity and Citizenship or a local competent Government entity.
⮚ Where the applicant is a legal person (Business / Entity) applying for Trade License, the following are required while registering for TRC;
● Proof of Authorization (Establishment Contract or the Power of Attorney).
● Copy of the audited financial accounts certified by a certified audit firm.
● A bank statement issued by a local bank covering 6 months within the financial year related to the request.
● Certified copy of the Memorandum of Association (if applicable).
⮚ Where the applicant is a legal person, i.e., Government entity, the following is required while registering for TRC;
● A copy of the Decree or the Certificate of Incorporation.
● Request letter issued by the person (the Government entity).
Eligibility Criteria considered while accepting the applications for registration by FTA:
✔ In case of Natural persons,
The applicant must have been a resident of the UAE for at least 180 days. Also an annual lease agreement officially documented by the competent authorities, such as EJARI in Dubai, municipalities in other Emirates and free zone authorities must be attached to the application.
✔ In case of 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.
● Financial accounts must be audited or prepared by an accredited audit firm and should be attached with other required documents to the application.
● The report must be certified and stamped by the audit firm.
● The audited financial report to be attached to the application must cover the year for which the certificate is requested.
● If the certificate is requested for the present year, the audit report must be covering the past year.
Public and private companies, investment firms, air transport firms and other companies operating in the UAE, as well as other types of UAE residents, may benefit from Avoidance of Double Taxation Agreements (DTA) by obtaining TRC.
The estimated Time to Submit Application by an applicant will be 45 Minutes. However, the estimated Time to Complete Application by the FTA will be 3 business days from the date the completed application was received. Once issued, the TRC can be downloaded from the TRC platform. The TRC is valid for one year from the beginning of the financial year selected by the applicant.
