A comprehensive understanding of the Tax Residency Certificate in the UAE

A comprehensive understanding of the Tax Residency Certificate in the UAE

The United Arab Emirates has emerged as a preferred global business hub owing to its attractive tax system. However, with the increase in international business transactions, taxation issues have become more complex. To alleviate these concerns, the UAE has signed Double Taxation Agreements with several countries, exempting many businesses from income tax. 


Double Taxation occurs when a person or business is taxed twice for the same income in two different countries, which can limit international trade and business growth opportunities. To take advantage of these agreements, individuals and organizations must obtain a Tax Residency Certificate (TRC), which is available to companies that have been operating in the mainland or free zones for at least a year. 

Investment firms, public and private companies, air transport companies, and others can benefit from a TRC by demonstrating their residency in another country and being subject to tax laws in that country. It is important to understand the details of TRC to leverage the benefits of Double Taxation Agreements.

What is a Tax Residency Certificate (TRC)?

The Tax Residency Certificate (TRC), also known as the Tax Domicile Certificate, is an authorized document that the Federal Tax Authority (FTA) of the UAE issues to eligible legal and natural entities to help them benefit from the Double Tax Agreement and avoid taxes on income generated within the UAE. 

The FTA has taken over the responsibility of issuing the certificate from the Ministry of Finance, and interested individuals or companies can apply for it. 

The TRC is only available to companies that have been based in the UAE for a minimum of one year and individuals who have been residents for at least 180 days. It is valid for one year from the date of issuance and is not applicable to offshore organizations. The cost of obtaining the certificate is AED 500 for tax registrants, AED 1000 for non-tax registrant natural persons, and AED 1750 for non-tax registrant legal persons.

Benefits of Getting a Tax Residency Certificate in the UAE
  • Both individuals and corporations can have their income included in the UAE Tax Residency Certificate (TRC) at their respective levels, meaning that  they can obtain separate TRCs for their personal and business incomes.
  • The UAE not only facilitates the setup of businesses within its borders, but also promotes the growth of the international market.
  • The UAE provides assistance in obtaining legal identification within the country.
  • The UAE ensures that businesses are not subjected to additional taxes during their operations.
  • The UAE strengthens and enhances mutual business relationships.
  • Individuals and corporations in the UAE have access to a variety of certifications.

Service Fees and Validity of UAE TRC
  • Once all the uploaded documents are verified, the pre-approval process typically takes between 4 to 5 business days.
  • After the payment of fees and approval, the issuance of UAE TRC typically takes 5 to 7 working days.
  • Individuals and companies are required to pay a fee of 100 Dirhams upon submitting their application.
  • Obtaining a certificate for an individual will require a payment of 1000 Dirhams.
  • The cost of obtaining a certificate for companies ranges from 500 to 1900 Dirhams.
  • In the event of loss or damage, a fee of 100 Dirhams will be charged for obtaining a copy of the original document.

A catalog of necessary documents required for obtaining TRC issuance
For Individuals
  • If the applicant is an employee, a document verifying their salary will be necessary. 
  • A replica of the company's license is mandatory for the application process.
  • A bank statement that has been endorsed by the bank for the past six months is necessary. 
  • Applicants must provide a copy of their passport, UAE residence visa, and Emirates ID, all of which must have been issued at least 180 days prior.
  • Documentation that provides evidence of income earned within the UAE, such as an employment agreement or share certificate/salary certificate, will            be required.
  • A report from the (GDRFA) that demonstrates all entries and exits from the UAE is mandatory.
  • Certified copies of the tenancy contract or Title Deed that have been valid for a minimum of three months prior to application must be provided.

For Investors
  • Marriage certificate copy
  • Both partners must provide copies of their passports, residency permits, and the spouse's salary certificate and work contract.

For Organizations
  • The organization's Certificate of Incorporation must be provided.
  • Copies of the passports and UAE residency visas of directors, shareholders, and managers are mandatory.
  • Shareholders must provide copies of their Emirates IDs.
  • A valid UAE trade license that has been operational for at least one year is required.
  • The Memorandum of Association must be submitted.
  • A certified copy of the tenancy contract is necessary.
  • Latest audited financial accounts and bank statements from the past six months, duly stamped by the bank, must be provided.

Procedure for obtaining a Tax Residency Certificate
To obtain a Tax Residency Certificate, the following steps need to be taken:
  • Create an account on the UAE Federal Tax Authority portal and complete the registration process.
  • Access the Tax Certificate account dashboard.
  • Click on the 'Create Tax Residency Certificate' option and complete the application form.
  • Upload the necessary documents in either PDF or JPG format.
  • After the documents have been verified, an email confirming the fees will be sent.
  • Once the fees have been paid, the certificate will be dispatched via courier within the specified time.

Last words
NSRM Taxation & Accounting Consultancy is a professional firm that provides comprehensive solutions for obtaining a Tax Residency Certificate in UAE tailored to your business needs. We have a team of experienced professionals who offer a wide range of services including corporate services, legal expertise, accounting, and financial services all under one roof.

With our vast experience, we have helped numerous clients in obtaining necessary certificates for their business. We ensure that you get your TRC within the given time frame so that you can focus on growing your business without the added burden of tax payment.

Our team of experts brings together their taxation, finance, and accounting knowledge to assist you in any way possible. Contact us today to get your Tax Residency Certificate in UAE or to know more about our services related to taxation. We are always happy to help you!