Tax residency Certificate
Tax residency certificate, also known as Tax domicile certificate, is issued by Federal Tax Authority as per the provisions of avoidance of double taxation agreements (DTAA). The certificate is valid for a year and is issued to individuals as well as companies. Additional certificate applications can also be filed depending on unique requirements.
The UAE’s generous tax climate is one of the many benefits that attract firms to the country. A huge chunk of enterprises that have their headquarters in the UAE are tax-free. Acquiring a tax residency certificate in UAE as part of the Double Taxation Avoidance Agreements (DTAA) guarantees that the same taxpayer is not taxed twice in two different nations.
As Tax residency certificates are unavailable to offshore corporations; hence, they should get a tax exemption certificate.
Objectives of Tax Residency Certificate UAE Individual or Company:
- Proof that the applicant is a resident of the UAE
- To avoid paying taxes in two countries
- Ease the process of cross-border trade and investment flows
- Encourage the development goals of the UAE
- Economic diversification
Frequently Asked Questions (FAQs)
Tax Residency Certificate Services – AMA Audit Tax Advisory
1. What is a Tax Residency Certificate (TRC) in the UAE?
A Tax Residency Certificate (also known as a Tax Residence Certificate) is an official document issued by the UAE Ministry of Finance. It confirms that an individual or a legal entity is a tax resident of the UAE, enabling them to benefit from the UAE’s Double Taxation Avoidance Agreements (DTAAs) with other countries.
2. Who can apply for a Tax Residency Certificate in the UAE?
The TRC is available to:
- Individuals who have resided in the UAE for at least 183 days in a 12-month period.
- Companies or legal entities that have been operating in the UAE for at least 1 year and have valid trade licenses.
3. What are the requirements for a Tax Residency Certificate for individuals?
To obtain a TRC as an individual, you typically need to provide:
- Passport copy
- UAE Residence Visa copy
- Emirates ID
- Entry/exit report from the UAE immigration authority
- Proof of UAE residence (e.g., tenancy contract, utility bills)
- Bank statements (UAE-based) for the past 6 months
- Income or employment details (if applicable)
4. What are the requirements for a Tax Residency Certificate for companies?
For businesses, required documents usually include:
- Valid trade license copy
- Memorandum of Association (MoA)
- Lease agreement (office premises)
- Audited financial statements or management accounts
- Bank statements (company account) for the last 6 months
- Passport and Emirates ID copies of the company’s owners/directors
5. How long does it take to get a Tax Residency Certificate in the UAE?
The process usually takes 2 to 4 weeks, depending on document readiness and review by the Ministry of Finance. AMA Audit Tax Advisory can help streamline the process to avoid delays.
6. Why do I need a Tax Residency Certificate?
A TRC allows you to:
- Avoid double taxation on income in your home country and the UAE
- Prove your tax residency status for legal or immigration purposes
- Fulfill international tax compliance requirements
7. Can a freelancer or self-employed individual apply for a TRC
Yes, provided you have a valid UAE freelance license or are self-employed through a registered entity, and you meet the 183-day physical presence requirement. AMA can guide you through eligibility and documentation.
8. Does the UAE issue Tax Residency Certificates for offshore companies?
Generally, offshore companies are not eligible for TRCs as they do not have a physical presence or substance in the UAE. However, certain exceptions may apply. AMA can evaluate your case and recommend alternative solutions if needed.
9. Can AMA Audit Tax Advisory help me apply for a Tax Residency Certificate?
Yes. Our team offers end-to-end support including:
- Eligibility assessment
- Documentation review and preparation
- Application submission through the Ministry of Finance portal
- Follow-up and issuance of the certificate
