Alankit.ae | Issuance of Tax Residency Certificate

OVERVIEW

A Tax Residency Certificate or Tax Domicile Certificate is issued by the Ministry of Finance (MOF), International Financial Relations and Organizations Department in UAE convening the eligibility criteria for government entities, companies, and individuals to benefit from double taxation avoidance treaties of the UAE in association with its global congeners.

Just in case that a person resides in the UAE for more than 180 days, he or she is eligible to apply for the UAE Residency Certificate. The same, however, is not applicable for the non-residents and hence they can not apply for the respective certificate.

Those companies that have remained in bus8iness for the past year in the UAE can easily apply for the certificate.

What Does Tax Residency Certificate Mean and Stand For?

It is essential to know what exactly Tax Residential Certificate means. Basically, a Tax Residency Certificate (TRC) is a legal document that confirms that a company or a private person has a legal residence status in the UAE and approval from the local authorities. This means that a company6 or an individual is eligible to receive income in this country while paying taxes at the local rate (practically 0% in nearly all the cases). In modern times, profit has become dynamic in nature where one can find a source of profit in any part of the world and is no more restricted one’s country where you have your business registered.

A country is financially operational based on the income received from the tax levied on its residents by the Government. The Double Taxation treaties were signed between the countries to save its resident from paying several fees for the same income. A tax residency certificate is a tool to affirm the fact to the tax authority of your country that you can safely use the double taxation treaties that are in practice though you are receiving income in another country.

Undoubtedly, everyone wants to reduce or minimize their deductions and often chooses those countries for business registration that offer minimal tax burden. With its 0% income tax for individuals and legal entities in UAE, it has become an ideal hub for people around the globe to start thinking of becoming legal residents here. But, in order to be able to make profits from the income earned in any other country, one must apply for a UAE Tax Resident Certificate. The Ministry of Finance (MOF) is all equipped to deal with such issues.

What Is The Validity of Issuance of Tax Residency Certificate / Tax Domicile Certificate by FTA In UAE?

The validity of the Issuance of Tax Residency Certificate / Tax Domicile Certificate by FTA is one year from the date of issue. The Tax Residence Certificate a.k.a. Tax Domicile Certificate can be used for one specific country at a time by an Individual or a Company/Corporate. You can apply for multiple certificates based on specific requirements.

Documents Required

For Companies

The company needs to exercise its activities for at least one year in UAE in order to enjoy the benefits of the Tax Residence Certificate in the UAE.

  • A copy of the trade license and partners' attachments
  • A copy of MOA (Memorandum Of Association )
  • A copy of the company’s owners/partners/directors’ passports, IDs, and permits of residence
  • A certified copy of the audited financial accounts
  • Validated Bank statement for 6 months.
  • A certified copy of the lease agreement
  • The establishment contract is certified by official authorities (if it is not a sole company)
  • The organizational structure of the company ( if it is not a sole company)

For Individuals

One must be a resident in the UAE for at least 180 days in case one wishes to apply for Tax resident certificate issued by FTA since this certificate is inaccessible to non-residents.

The documents required for individual Issuance of Tax Residency Certificate a.k.a. Tax Domicile Certificate by FTA in UAE are mentioned below:

  • A copy of Passport and Emirates ID
  • Valid residence permit
  • A copy of the company’s owners/partners/directors’ passports, IDs, and permits of residence
  • Bank statement for 6 months
  • Salary certificate / Income certificate
  • A report from the General Directorate of Residency and Foreigners Affairs mentioning the duration of the person’s stay in UAE (Minimum 180 days)
  • The establishment contract is certified by official authorities (if it is not a sole company)
  • Tax forms (if any) from the country where the certificate needs to be submitted

Benefits of Issuance of Tax Residency Certificate / Tax Domicile Certificate by FTA in UAE

As an investor in Dubai, one can substantially benefit from access to the International Market once the company is formed in the UAE. Several benefits are covered by TRC such as :

  • Can avoid double taxation
  • Can receive tax incentives
  • Can get tax benefits for import and export
  • Can ease international business and strengthen cross border business relationship
  • Individuals and corporates are permitted for separate certificates

FAQs

What is the total time to obtain a tax resident certificate?

The certificate can be applied 6 months after you become the UAE resident (obtain your residency visa). As for companies – the application can be made in 12 months. It takes approximately one to two months to obtain it from the date of all documents application.

Can I receive the certificate for the previous times I have been a resident in the UAE?

Yes, the possibility to obtain the TRC certificate retrospectively means covering the previous time provided you have all the necessary documents.

What exactly does a tax residency certificate confirm?

It confirms your status as the tax resident of Dubai or other Emirates of the UAE from the standpoint of the UAE authorities.

Who can obtain the TRC?

Private persons and local companies – free zone and mainland

Does it also use the advantages of double tax treaties of the UAE?

Yes, the domicile certificate is one of the most important documents you need to qualify for double tax treaties advantages under the jurisdiction of the UAE.

What is the immigration report, and when it is required?

The immigration report is the report issued to provide proof of your trips to the UAE. It is obtained from the UAE immigration authorities and is one of the documents required for the application for the TRC.

NOTE:- If you need full support on getting your tax residency certificate TRC - for a private person or company - simply get in touch with us – and our advisors help you with all the steps and documents.

For any queries or information required related to our services or company, please feel free to get in touch with us at any point of time. Fill in the form below and one of our executives will contact you at the earliest possible. (Within 24 hours)

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