A Tax Residency Certificate (TRC) is an official document issued by the Federal Tax Authority
(FTA) that confirms an individual’s or a company’s tax residency status in the UAE. This
certificate is vital for claiming benefits under the Double Taxation Avoidance Agreement
(DTAA), helping to prevent double taxation on the same income in two different countries – a
common challenge in cross-border trade and investment.
Double taxation occurs when two countries impose similar taxes on the same taxpayer for the
same income, which can significantly affect international business operations. To address this,
many countries with substantial cross-border investments have signed double taxation treaties,
offering relief and fostering smoother international trade.
The TRC is valid for one year and is available to Mainland companies and Free Zone companies
provided they have been operational in the UAE for at least 12 months. It is to be noted that
Offshore companies are not eligible for a TRC and should instead apply for a Tax Exemption
Certificate.
At AMA, we guide you through every step of the TRC application process, ensuring full
compliance with regulatory requirements. Our expert team helps you obtain your certificate
promptly and efficiently, reducing your tax burden and enhancing your international tax
planning.
Frequently Asked Questions (FAQs)
Tax Residency Certificate Services – AMA Global
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 Global 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 Global 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
