Tax Residence Certificate in UAE

Avoid the Double Taxation of Income

Tax Residency Certificate

Tax Residence Certificate in UAE is issued by the International Financial Relations and Organizations Department of the Ministry of Finance. Companies and individuals who are UAE residents can obtain a Tax Residency Certificate in order to avoid double taxation.

In accordance with the Double Taxation Avoidance Agreement (DTAA) Treaty entered by UAE with different countries, a Tax Residency Certificate will be issued to all eligible companies and individuals.

To ensure that businesses based in UAE are not paying double the tax, UAE has entered into a Double Tax Avoidance Agreement (DTAA) with almost 76 Countries in the world.

Also, it enables investors, individuals, and companies to claim the benefits of the Double Taxation Avoidance Agreement (DTAA) by obtaining the Tax Residency Certificate issued in the UAE.

Eligibility to Apply for the Tax Residence (Tax Domicile) Certificate

Individuals: The Individual must be a UAE resident and be in UAE for at least 183 days a year.

Companies: The company must be operating in UAE for at least one year.

Resident companies in UAE – Free Zone and Mainland companies are eligible to apply for Tax Residency Certificate in UAE.

However, an offshore company is considered outside the scope of the Tax Residence Certificate as it is not a resident company of UAE. Also, the Branch of a Foreign Company does not qualify for a Tax Residence Certificate, there is an exemption to this if the shareholder of the foreign company is a UAE resident.

Documents Required for Applying for Tax Residence Certificate in UAE

Following documents must submit along with the Application for the Tax Residence Certificate in UAE:-

For Individual

Passport copy & Valid Residence Visa Copy (Emirates ID)
Certified Tenancy Contract for Proof of Residence
Bank Statement for at least 6 months (for the year which Tax Residence Certificate is required)
Source of income/ Salary Certificate
Exit & Entry Report – Immigration Report for stating the duration

For the Companies

Valid Trade License Copy
Company Documents such as Articles of Association, Incorporation Certificate, Memorandum of Association, etc.
Company Owners/Partners/ Director Passport, Residence Visa & Emirates ID copy
Audited Financial Account Statements and Audit Report of the company
Bank Statement for at least 6 months
Tenancy Contract of Office Space to state the proof of residence

The validity of the Tax Residence Certificate: The Tax Residence Certificate in UAE is valid for One Year from the Date of Issuance.

How to Apply for the Tax Residence Certificate in UAE?

Tax Residency Certificate is issued by the Ministry of Finance, Government of UAE as per the provision for the avoidance of double taxation for companies & individuals residing inside the country.

To apply for the Tax Residency certificate one must have an email and signup into the system. After paying and submitting the required documents, the customer will receive the certificate via email.

Partner with Aurion Business Consultants, talk to our Experts about your Business Activity, company structure, TRC requirements, and prepare the application form
Our team will assist you with the documentation process required to be submitted to the Ministry of Finance to obtain the Tax Residence Certificate
Make the required payment, get the documents prepared, attested, and organized to submit to the Ministry of Finance, UAE
Once the authorities assess the documents, the Tax Residence Certificate will be issued in 7-10 working days

How Will Aurion Assist You?

Aurion will assist you in preparing the required documentation for the Tax Residence Certificate in UAE. Our professionally trained Business Consultants will provide advisory services to businesses and individuals to apply for Tax Residence Certificate (TRC) the right way.

We assist you with the following activities:

Preparation of application forms and document checklist to apply for the TR Certificate
Auditing, accounting, and bookkeeping to track and tally your company’s finances
Advising on the investment structures to enhance the tax savings through effective company formation in UAE
Leverage the benefits of Double Taxation Agreements to optimize taxes and save money for the business
Coordinate with Government Authorities to obtain the Tax Residence Certificate for your Business

To know more about Obtaining a Tax Residency Certificate in UAE for you or your company, talk to our expert Business Consultants right away!

General FAQs on Tax Residency Certificate

Who is eligible to apply for the Tax Residence Certificate in the UAE?

The following entities can apply for the Tax Residence Certificate in the UAE

Resident Company after one year of incorporation
Individual investors/employees with UAE Residence Visa (The applicant must stay in UAE for a minimum of 180 days in a year)

Should the individual stay in UAE for 180 consecutive days to meet the MOF requirements?

The Ministry of Finance has fixed a prerequisite for an individual applicant to have spent at least 180 days in the UAE (need not be continuous) within the year preceding the applications for the certificate.

Is an international bank statement mandatory for applying Tax Residency Certificate?

The Ministry of Finance will not accept foreign bank statements. The applicant must have a personal bank account in the UAE. There must be a minimum 6-month holding period on this account. Also, the Ministry of Finance requires 6 months bank statements from the UAE bank.

Who Cannot Apply for a Tax Residency Certificate?

Branch of a Foreign Company
Offshore Company
A non-employed individual (with a spouse visa)

Can a UAE offshore Company acquire a UAE Tax Residence Certificate?

No, Offshore Companies are treated as non-resident corporate entities for tax purposes and are not eligible for UAE Tax Residence Certificate.

Is it mandatory to have a residential address in the UAE for applying for Tax Residence Certificate?

Yes, a valid residential address in the UAE and a valid tenancy contract in the applicant’s name are mandatory conditions to apply for the UAE Tax Residence Certificate.

Can the Tax Residence Certificate be pre-dated?

An individual/company can acquire backdated Tax Residency Certificates. An applicant must provide proof of a UAE residency visa, six-month bank statements, and a residential address for that time period.