How to get a Tax Residency Certificate in UAE?

The United Arab Emirates (UAE) issues Tax Residency Certificate (TRCs) to eligible individuals and businesses. This certificate serves as official documentation proving your tax residency status within the UAE, and can be crucial for claiming benefits under Double Taxation Avoidance Agreements (DTAAs) the UAE has with other countries. Obtaining a Tax Residency Certificate in UAE is especially important if you want to avoid paying taxes twice on the same income in both the UAE and your home country.

There are two main types of TRCs in the UAE:

• Domestic TRC: Primarily used within the UAE.
• DTA TRC: Used for cross-border transactions involving countries with DTAAs with the UAE.

The eligibility requirements and application process differ slightly between these two types. Here's a detailed breakdown of how to acquire a TRC in the UAE:

Eligibility:

• Individuals:

Must have resided in the UAE for at least 183 days during the relevant tax year.

Proof of residency can be established through Emirates ID, residence visa, and stamped entry/exit records.

• Businesses:

Must be a legal entity established in the UAE for at least one year (for DTA TRC).

Possess a valid trade license (mainland or free zone).

What is Tax Residency Certificate in UAE?

A Tax Residency Certificate (TRC) in the UAE is an official document issued by the Federal Tax Authority (FTA) to eligible businesses and individuals. It confirms your tax residency status for purposes of treaties signed by the UAE to avoid double taxation on income [UAE tax residency certificate].

Benefits of Tax Residency Certificate in UAE

There are several advantages to having a Tax Residency Certificate (TRC) in the United Arab Emirates (UAE). Here are some of the key benefits:

• Avoid Double Taxation: The UAE has signed double taxation avoidance agreements (DTAAs) with many other countries. A TRC allows you to claim the benefits of these agreements, which can help you avoid being taxed on the same income in both the UAE and your home country.
• Import-Export Benefits: A TRC can help you obtain tax exemptions and other benefits when importing and exporting goods. This can make your business more competitive and profitable.
• Legal Recognition: The TRC serves as official documentation of your tax residency status in the UAE. This can be helpful for various purposes, such as opening a bank account or complying with reporting requirements.
• Credibility and Transparency: Having a TRC demonstrates that you are a responsible taxpayer who is compliant with UAE regulations. This can boost your credibility and transparency in the eyes of business partners and potential investors.

Overall, a TRC is a valuable document for businesses and individuals who are tax residents of the UAE. It can help you save money on taxes, improve your business operations, and enhance your credibility.

Procedures for Tax Residency Certificate in UAE

• Obtaining a UAE Tax Residency Certificate can be done online. Here's a simplified breakdown of the process:
• Head to the Federal Tax Authority (FTA) website and create an account.
• Look for the application form for a UAE Tax Residency Certificate and fill it out online.
• When it's time to submit your application, you'll need to upload any necessary documents in formats like PDF or JPEG.
• After your application is approved, you can pay the fees online.
• Once everything is settled, the FTA will send your Tax Residency Certificate directly to your registered address via express courier.

Required Documents for Tax Residency Certificate in UAE

Getting a tax residency certificate in the UAE requires specific documents depending on if you're an individual or a company.

For individuals:

• Passport, UAE residence visa, and Emirates ID copies
• Proof of residency like a lease agreement
• Salary certificate
• Bank statements for the past 6 months

For companies:

• Trade license and company registration documents
• Ownership and management information (passports, visas)
• Proof of operation for at least a year
• Audited financial statements or bank statements for the past 6 months

For company partners:

In addition to the company documents already mentioned, you'll also need:

• Copies of the partners' passports and residency permits
• Partner's wage certificate and work contract (if applicable)
• A copy of the marriage certificate (if applicable)

Processing time

It usually takes 4-5 working days for pre-approval. After approval, you'll receive the Tax Residency Certificate within 5-7 working days.

Why Choose Reyson Badger for obtaining a Tax Residency Certificate in the UAE?

Looking to secure your Tax Residency Certificate hassle-free in the UAE? Look no further than Reyson Badger! Our expert team specializes in providing seamless solutions for obtaining your Tax Residency Certificate, ensuring you navigate the process swiftly and efficiently.

At Reyson Badger, we prioritize client satisfaction. Our personalized approach means you'll receive tailored assistance every step of the way. Our experienced team simplifies the process by acquiring the necessary documentation and certifications promptly to ensure timely completion of the TRC procedure.