Tax Residency Certificate UAE: Step by step guide

Tax Residency Certificate UAE
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A Tax Residence Certificate (TRC) is an official document issued by Federal tax authorities in the United Arab Emirates (UAE) that confirms an individual’s tax residency status in the country. Here’s what you need to know about the TRC in the UAE:

Purpose of the TRC: Tax Residence Certificate:

The TRC serves as proof of tax residency for individuals and Businesses residing in the UAE. It may be required for various purposes, such as availing of tax benefits under double tax treaties, claiming tax refunds, or providing evidence of residency for financial or legal matters.

Tax Residence Certificate eligibility:

The eligibility criteria for obtaining a TRC may vary depending on the tax regulations and agreements between the UAE and other countries. Generally, individuals who are considered residents for tax purposes in the UAE can apply for a TRC.

Tax Residency in the UAE:

The UAE determines tax residency based on the number of days an individual has physically stayed in the country during a tax year. The exact criteria may differ depending on the applicable tax laws and double tax treaties. It’s essential to consult the relevant regulations or seek professional advice to determine your tax residency status.

Application Process: To obtain a TRC in the UAE, you typically need to follow these steps:

1. Register with FTA (Federal Tax Authority )

If you haven’t already done so, you need to create an online account in the Federal Tax Authority

2. Gather necessary documents: Prepare the required documents:

Required Documents for Tax Residency Certificate (COMPANIES)

  • Valid Company Trade License Copy
  • Establishment contract certified by official authorities (if it is not a Sole Company)
  • Shareholders & Manager Passport Copy
  • Shareholders & Manager Residence Visa
  • Shareholders & Manager Emirates ID
  • Certified copy of the latest audited financial Statement/Audit Report
  • Latest and validated 6-month Company bank statement – Must be stamped by the bank.
  • Certified copy of Company lease agreement or Tenancy Contract
  • Tax forms (if any) from the country in which the certificate is to be submitted.

Required Documents for Tax Residency Certificate (INDIVIDUALS):

  • Passport Copy
  • UAE Residence Visa Copy
  • Emirates ID Copy
  • A certified copy of the (residential) lease agreement or Tenancy Contract Copy
  • Latest Salary certificate
  • The Latest & validated 6-month bank statement.
  • A report from the General Directorate of Residency and Foreigners Affairs specifies the number of days the resident has stayed in the UAE.
  • Tax forms (if any) from the country in which the certificate is to be submitted.

Service fee details:

  • AED 50 for submission
  • AED 500 for all tax registrants
  • AED 1,000 for non-tax registrant natural persons
  • AED 1,750 for non-tax registrant legal persons

3. Submit the application online via the FTA website:

Complete the TRC application form and attach the supporting documents. Submit the application to the FTA through their designated channels.

3. Application review:

The FTA will review your application and supporting documents. They may request additional information or clarification if needed.

4. TRC issuance:

If your application is approved, you will receive the TRC from the FTA, confirming your tax residency status in the UAE.

Renewal and Validity:

TRCs typically have a validity period, and you may need to renew them periodically. The renewal process and validity period will depend on the specific regulations and guidelines in place at the time of renewal.

Professional Assistance:

If you are unsure about the application process or have complex tax circumstances, it’s recommended to seek professional advice from professionals familiar with UAE tax laws and regulations. FreeZone Market will assist you in obtaining a tax residency certificate in UAE. FreeZone Market powered by FZM Solutions DMCC is one of the most professional and approved corporate service providers and company formation specialist in Dubai.

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