Before learning How to get a tax residency certificate in UAE, first, you need to know what it is.
You can be a resident of many counties at once, but you must pay taxes to only one. It would be best if you had an avoidance double taxes agreement between your home and resident countries to benefit yourself.
“A tax residency certificate (TRC) also refers to a tax domicile certificate (TDC). TRC is an official document for eligible government entities, companies, and individuals to assure a legal entity’s country of tax residence. It helps to take advantage of agreements to avoid double taxation on income, to which UAE is the signatory”.
What is the difference between a residence and a residency certificate?
The residence is the place where a person lives. It can be a house or apartment. Primarily it refers to a city or country of residence.
On the other hand, a residency certificate allows you to prove your place of residence away from your hometown. As mentioned above, you need this document concerning various tax and social security contributions.
Who needs Tax Residency Certificate in UAE?
Suppose you are a foreign individual or business person currently residing in UAE. Are there any Business Companies or firms registered under your name in UAE and your home country? Then you have to pay taxes in both countries. To avoid this situation, you need a tax residence certificate in UAE. This certificate will help you to avoid double taxation on income in UAE.
Perks of having Tax Residency Certificate in the UAE
These are the following perks you can take advantage of;
- A tax residence certificate is a kind of double taxation avoidance agreement with your country that will help you to avoid income taxes back home.
- You could reclaim taxes if you paid taxes the same year you became a UAE tax resident.
Now at this point, you will have a lot of questions in your mind. They can be
- What kind of documents did you require?
- What are the eligibility criteria to get a tax residency certificate in UAE?
- Who has the tax certificate issuance authority in UAE?
- How to apply for TRC?
- How will you get your one?
We will answer all of your questions; keep reading ahead.
Required documents and eligibility criteria
You can apply for TRC on individual and legal entities as well.
- Any individual who stays more than 180 days in UAE is eligible for TRC.
- Companies/firms incorporated for over one year and managed in UAE qualify for tax residency certificates.
The process to apply for a tax residency certificate in UAE is different in terms of individual and legal entities, so they both have other document requirements;
Both are as follows:
- Valid passport copy
- UAE residence visa copy
- Emirates ID Copy
- Source of income
- Valid bank statements for six months from a local UAE bank
- Immigration report
- A certified copy of the lease agreement or Tenancy contract
- Tax form (if any) from the country where the certificate is to be submitted. Suppose the Tax form requires FTA Signature and Stamp. You must send the original document to FTA via courier with a return service. To attest the form, you must fill and sign related fields to his information for FTA.
Companies also have their requirements to apply for a tax residency certificate in UAE. You must gather all of these documents in digital form before applying online.
For legal entity
- Copy of the company’s valid trade license directors/shareholder attachments
- Establishment contract certified by higher authorities (if it is not a sole company)
- Certified copy of legal persons’ residence permits
- Certified copy of lease agreement.
- Copy of the valid passport of the legal person’s owner/partner/directors
- Copy of visa and Emirates ID of the company’s Owner/Director/Manager
- Validated bank statements for six months from a local UAE Bank.
- An audited latest financial information that has the company’s UAE bank statements for the last six months (stamped by the bank)
- Tax forms (if any) from the country where the treaty certificate is to be put forward. If the Tax form needs FTA Signature and Stamp, you are requested to send the original document to FTA.
How to Get a Tax Residency Certificate in UAE?
To get a tax residency certificate in UAE, you need to apply for it. The Process is discussed in detail below;
How to apply for a Tax residency certificate in UAE?
Applying for Tax Residency Certificate:
Follow these below steps and apply for your certificate.
- Create an account on Federal Tax Authority (FTA) website. https://trc.tax.gov.ae/TRC_Th/
- After account creation, you must log in to your account, as you’ll be redirected to the login page.
- On successful login, the User main page dashboard will be up before you.
- The following request status will be shown if you already make a request:
- Draft – awaiting payment
- Payment pending
- Payment pending – transaction pending
- Click on the op “Create Tax Residency Certificate” from the dashboard.
- A pop-up will be up with the question. That might ask whether you are already registered Tax Payers with a “Yes” or “No” option.
- If the User is not a registered Taxpayer in eService, they can click on “No” to proceed with the request.
- If the User clicks on “Yes,” they should enter the TRN Number and Email registered in eServices for eServices account verification.
- If the User is registered as a Tax Group, and one of the members wants to apply for Tax Certificate, the User should enter the Member’s TRN/TIN and email address.
- If the entered details match with eServices, you will be redirected to the request page for applying for the certificate.
- Select an option under “Certificate is for”
- If you are applying for a person, Select “Natural Person.”
- If you are applying for a legal entity, Select “Legal Person.”
- From the dropdown list, select the country you are applying for.
- Select the Start Date of the required Financial Year, which will be the issuing date in the certificate (e.g., if the applicant selects 01-01-2023, the certificate will be valid from 01-01-2023 to 31-12-2023)
- Upload all of your required data and documents.
- Click on submit button to submit your request, or click on draft if you want to edit your request later.
After successfully submitting the tax residency certificate request, a page will be displayed with fee information. You have to check the box which asks about the authentication of the above-submitted information.
You will be redirected to payment options.
You can choose payment methods via eDirham card or non-eDirham card.
Once the User clicks on “confirm & Calculate Prices, it will show the details of the purchased service.
You need to insert the card details and click “pay now” to proceed with the payment.
- Once you successfully paid the certificate amount, a download icon will be displayed for the particular request, which the User can click and download the certificate.
- After the successful payment, you will receive the certificate in your registered email.
- You can click and download the certificate to their local machines.
- The downloaded certificate will be password protected file, and you should enter their password to open and view the certificate.
- Password for the downloaded certificate will be the combination of username and the last four digits of their mobile number.
If you have any queries about the residency certificate or need assistance obtaining your tax certificate, feel free to contact us by clicking the button below.