What is a tax residency certificate ?
A Tax Residency Certificate in the UAE is a document issued by the UAE Ministry of Finance evidencing the applicant’s (individual/company) formal status as a UAE resident with respect to a particular Double Taxation Avoidance Agreement (“DTT”) which is between the UAE and a specific foreign jurisdiction.
Benefits of tax residency certificate
- Avoidance of double taxation.
- Receiving tax incentives.
- Receiving tax benefits for import and export.
- Easing international business and strengthening cross-border business relationships.
- Separate certificates are permitted to Individuals and corporates.
Eligibility for tax residency certificate
Any company operating on the mainland or in a Freezone which has been active in the UAE for at least a year is well eligible for the Tax Residency Certificate. However, offshore companies are not eligible for this and need to receive a tax exemption certificate instead of the Tax Residency Certificate.
In addition, individuals who have resided in the UAE for at least 180 days are well eligible for the Tax Residency Certificate.
Required documents for tax residency certificate (Companies):
- Valid Company Trade License Copy
- Establishment contract which is 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 which is stamped by the bank
- Tenancy Contract or Certified copy of Company lease agreement
- Tax forms (only if any) from the country in which the certificate needs to be submitted.
Required documents for tax residency certificate (Individuals):
- Passport Copy
- UAE Residence Visa Copy
- Emirates ID Copy
- A certified copy of the Tenancy Contract or residential lease agreement
- Latest Salary certificate.
- Latest & validated 6-month bank statement which is stamped by the bank
- Entry and exit report from the Federal Authority of Identity and Citizenship or a local competent Government entity. (Must be at least 180 days)
- Tax forms (only if any) from the country in which the certificate needs to be submitted.
Fees for tax residency certificate in the UAE
- AED 50 for TRC application submission.
- AED 500 for all tax registrants which is applicable to both Individuals and Companies
- AED 1,000 for non-tax registrant natural persons which is applicable to Individuals
- AED 1,750 for non-tax registrant legal persons which is applicable to Companies
Validity of certificate:
The Tax Residency has a validity period of 1 year, and can then be renewed annually, subject to a resubmission and renewal process.
If you are someone currently with tax-related concerns, we encourage you to reach out to us without hesitation. Our team of experienced experts are prepared to assist you professionally and promptly.