How To Obtain a Tax Residency Certificate UAE?

May 23, 2024

In the UAE, a Tax Residency Certificate is one of the official documents issued by the Ministry of Finance. UAE has signed tax treaties with 55 countries to avoid double taxation. A certificate of tax residency that certifies that an individual or company is resident in a specific country. Foreign investors and companies from other taxable jurisdictions will be able to avoid double taxation. It is issued to companies that have already registered in the UAE or to individuals who have received a residency visa. This article will discuss the tax residency certificate in UAE and how corporate tax consultants UAE can help in obtaining the tax residency certificate in UAE.

What is a Tax Residency Certificate?

Tax Residency Certificate or sometimes called Tax Domicile Certificate is an official certificate or document which is issued by the Ministry of Finance of UAE to either Companies inside UAE for at least 1 year of age or Individual with UAE residency visa / permanently residing in the UAE for at least minimum of 180 Days.

This Official Certificate is used to fully utilize the advantages of the extensive double tax treaties and to take advantage of double taxation avoidance agreements signed by the UAE with over 76 Countries in the World and this certificate valid for one year from the date of its issue.

This Official Tax Residency Certificate in UAE is not Applicable to Offshore Companies (International Business Companies).

Required Documents for Tax Residency Certificate (Companies)

For Companies operating in the region and have completed more than one year of business operations, following documents are required for applying for the tax Residency Certificate in UAE.

Valid Company Trade License Copy
Establishment contract 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
Certified copy of Company lease agreement or Tenancy Contract
Tax forms (if any) from the country in which the certificate is to be submitted.

Required Documents for Tax Residency Certificate (Individuals)

For Individuals, following documents are required for applying for the tax Residency Certificate in UAE.

Passport Copy
UAE Residence Visa Copy
Emirates ID Copy
A certified copy of (residential) lease agreement or Tenancy Contract Copy
Latest Salary certificate.
Latest & validated 6-month bank statement
A report from the General Directorate of Residency and Foreigners Affairs specifying the number of days the resident has stayed in the UAE.
Tax forms (if any) from the country in which the certificate is to be submitted.

Who is eligible for the UAE Tax Residency Certificate?

For the eligibility for UAE Tax Residence Certificate, the applicants can be categorized into two

Natural Persons/ Individuals

The applicants must be UAE residents and have stayed in the country for at least 180 days in a year. Also, the individual must have a local residence proof such as a Tenancy Contract, Title Deed of property, or a freelance permit they own to show the required physical substance in UAE.

Legal Persons/ Corporates

The other category of applicants are the enterprises or establishments registered in UAE’s business jurisdictions – Mainland and Free Zone. The companies must be at least 1 year old to apply for the Tax Residence Certificate.

How can I get a UAE Tax Residency Certificate?

Following are the steps involved in obtaining the UAE Tax Residence Certificate.

Signup with the Federal Tax Authority to create an Account to Register for the Tax Residency Certificate in UAE
Navigate to the Personal Account Dashboard
Create a Tax Residency Certificate by clicking on the option
Choose the right selection – Natural Person or Legal Person
Upload all the relevant documents and fill up the fields
Click on the Finish button to complete the setup process
Make the Fee Payment to obtain the Tax Residence Certificate online
If a Federal Tax Authority (FTA) Attestation is needed for a Tax Form, the complete audit report and application form must be mailed to the FTA by the applicant. (For Certain Cases)
The applicants especially ‘Natural Persons’ must consider their physical presence in the UAE while applying for the Tax Residence Certificate. Their arrival and departure to and from the UAE must be timed accordingly.

What is the period to obtain the Tax Residence Certificate in UAE?

It takes almost 3-4 business days for the Federal Tax Authority to review the application for a Tax Residence Certificate to the applicant. So, within a Week, the digital copy of the Tax Residence Certificate will be made available to the Applicant.

Tax Consultant in Dubai, UAE

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FAQ’s

What is a tax residency certificate?

The tax residency certificate is issued for eligible government entities, individuals, and companies to take benefit of agreements of double taxation avoidance on net income. The residing applying for this certificate must be a UAE resident for the last 180 days.

Why is a tax residency certificate necessary in the UAE?

If you want to get the advantage of double agreements in the UAE, companies or individuals must have a tax residency certificate. If a company wants to claim income tax relief in UAE, then a tax residency certification is mandatory from the tax authority of the country.

Who is eligible to obtain a tax residency certificate in the UAE?

The applicant of the TRC in UAE must have been a resident of the UAE for at least 180 days. Also, they need an annual lease agreement with the competent authorities such as EJARI in Dubai, and free zone authorities must be attached to the application.

How can I apply for a tax residency certificate in the UAE?

These are the easy steps to follow for you to apply for the tax residency certificate in the UAE:

Access the Tax Certificate account dashboard.

Click on “Create Tax Residency Certificate.”

Complete the process and pay certificate fees after FTA’s approval.

What documents are required for obtaining a tax residency certificate in the UAE?

These are the documents required for the person:

Passport, valid Residence Permit, Emirates ID, a certified copy of the residential lease agreement, salary certificate, source of income, and a bank statement issued by a local bank.

How long does it take to get a tax residency certificate in the UAE?

Federal Authority confirmation and approval come within 4 to 5 working days. The confirmation will come after you upload all the correct documents and complete the application form.

Are there any fees involved in obtaining a tax residency certificate in the UAE?

The cost of getting a tax residency certificate in Dubai, UAE is AED 2,000. There can be other fees involved for the submission and review, it depends on how you make your application.