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Tax Residency Certificate UAE

Tax residency certificate, also known as Tax domicile certificate, is issued by Federal Tax Authority as per the provisions of avoidance of double taxation agreements. The certificate is valid for a year and is issued to individuals as well as companies.

Objectives of UAE tax residency certificate

  • To prove that the applicant is a resident of UAE
  • To avoid paying taxes in two countries
  • Ease the process of cross-border trade and investment flows
  • Encourage the development goals of UAE
  • Economic diversification

What is double taxation avoidance agreement?

When two countries impose tax on the same tax payer on the same tax base, it is termed as double taxation. To avoid this, countries sign a tax treaty. UAE has entered into a double taxation avoidance agreement with more than 100 countries. In 2018, the country signed the treaty with Saudi Arabia, the first GCC country in the list.

It was the Ministry of Finance that was in charge of issuing tax residency certificates until recently. But, now the issuing authority has been changed from MoF to the Federal Tax Authority.

Tax residency certificate For individuals

A person applying for the Tax residency certificate in UAE(TRC) should have stayed in the UAE for at least 180 days; non-residents cannot apply.

Documents required for Tax residency certificate:

  • A copy of the passport and valid permit of residence
  • A copy of the ID card
  • A certified copy of the (residential) lease agreement
  • Validated 6-month bank statement from a local bank
  • Salary certificate
  • A report from the General Directorate of Residency and Foreigners Affairs specifying the duration of stay
  • Tax forms (if any) from the country where the certificate needs to be submitted

Tax residency certificate for companies:

If a company needs to apply for Tax residency certificate (TRC), then they should have functioned in the UAE for minimum one year.

Documents required for Tax residency certificate:

  • A copy of the trade license and partners’ attachment
  • Establishment contract certified by official authorities (if it is not a sole company)
  • A copy of the company’s owners/partners/directors’ passports, IDs and permits of residence
  • A certified copy of the audited financial accounts
  • A validated 6-month bank statement
  • A certified copy of the lease agreement
  • The organisational structure of the company (if it is not a sole Company)

What is procedure involved in acquiring the Tax Residency Certificate UAE?

  1. Create an account on the official site
  2. Fill the application form
  3. Attach the necessary documents in PDF or JPEG format

Upon verification of the application and the documents, an email will be sent to the applicant, provided the criteria are met. Following this, fee payment will have to be done and the applicant will receive the certificate via express courier

How many days does it take to get the UAE Tax Residency Certificate?

The pre-approval process usually takes 4-5 working days, if all the relevant documents are in place. Once the pre-approval process is completed, it can take up to another 5 days to issue the tax residency certificate.

Change of Authority in issuing the tax residency certificate in UAE

The Ministry of Finance was responsible for the issuance of tax residency certificate in UAE till November, 2020. It was then changed to Federal Tax authority as per the Cabinet Decision No. 65 of 2020.

If you wish to avail tax domicile certificate in UAE or if you have any query related to it, contact Jumeira Consultants. We have been in the field for quite a long time and have helped numerous clients obtain tax residency certificate.

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