What is a Tax Residency Certificate?

Tax Domicile Certificate is a document demonstrating that you pay income taxes to a particular country and grants you the right to take advantage of double taxation avoidance agreements with that country. For example, in the United Arab Emirates, Tax Residency Certificates are issued by the Ministry of Finance for one year.

How to get a Tax Residency Certificate?

The TRC is available to individuals who have lived in the United Arab Emirates for at least half a year. Getting residency in the UAE can be accomplished in several ways, and AMCA can assist you with that process. In addition, companies that have been incorporated for over one year and are managed from the United Arab Emirates can also qualify for the Tax Residency Certificate, in which case we might also be of interest to you.

Benefits of obtaining this certificate

A UAE tax residency certificate has some advantages. The following are some of them:

  • It is the final, conclusive proof of tax residency in the country of residence for an establishment or individual.
  • Certificates of tax residency are available to both mainland and free zone companies.
  • Bypassing double taxation is made more accessible for companies and individuals.
  • Allows one to avoid income tax in the UAE by displaying individual or corporate status.
  • Imports and exports are no longer subject to taxes.
  • Boosts international business by fostering relationships between nations.
  • This certificate is available to both individuals and corporations.
  • Individuals and corporations may obtain various certificates for different countries.

Requirements to obtain the Tax Residency Certificate

Before an organization can obtain a Tax Residency Certificate, it needs to meet specific requirements. Applicants should check if they qualify before requesting a certificate since their application may be rejected if they do not meet the criteria.

Companies must meet the following requirements:

  • It is recommended to provide copies of the passport and visa at least 180 days before the expiration date.
  • Copy of Emirates ID
  • Statement of UAE bank account for six months (the bank will stamp it)
  • A valid proof of income from the UAE.
  • A report on immigration
  • Title deed or tenancy agreement
  • Payment of AED 2,000 plus AED 3 for application expenses via the e-Dirham card

How can AMCA Help You?

At AMCA, we can assist you with registering a company in the UAE, auditing, accounting, taxation, and incorporating the company. As a professional and customized company our goal is to meet the needs of each client.

Tax re gulations require professional tax advice and guidance concerning your company's governance. A tax strategy provides an impartial perspective in analyzing the business model and individual factors.

In the UAE, AMCA is pleased to provide Tax Residency Certificates or Tax Domicile Certificates. To ensure the TRC procedure is completed on time, our knowledgeable staff will obtain the relevant documents and certifications.

Frequently Asked Questions

  • What is a TRC?

    A Tax Residency Certificate (TRC) is an official document issued by the UAE Ministry of Finance that certifies an individual or company's tax residency status in the UAE for the purpose of claiming benefits under a double taxation avoidance agreement.

  • Who is eligible to apply for a TRC?
    • An Applicant, who is a natural person, must have been residing in the UAE for at least 180 days.
    • A natural person who's physically present in the State for a period of 90 days or more can apply for TRC but is subject to certain conditions mentioned in Cabinet Decision No. 85 of 2022 : Determination of Tax Residency.
    • An Applicant that is a legal person must have been established in the UAE for at least one year.
  • What documents are required to apply for a TRC?

    The documents required to apply for a TRC may vary depending on the eligible applicant. For further queries on TRC, Contact AMCA for assistance.

  • Can Offshore Companies apply for TRC?

    As offshore companies are not listed in the Double Taxation Avoidance Agreements, they are unable to apply for the service.

  • Can one still apply for TRC for previous financial years (i.e., 2020,2021 and 2022)?

    A legal entity must have been established for at least one year in order to be eligible to apply for a TRC.

Enquire Now Enquire Now