What is a Tax Residency Certificate?
A Tax Domicile Certificate is an official document that confirms an individual or business pays income taxes in a specific country. It enables the holder to benefit from double taxation avoidance agreements (DTAs) with other countries.
In the United Arab Emirates (UAE), Tax Residency Certificates, often referred to as Tax Domicile Certificates, are issued by the Federal Tax Authority and are valid for one year. This certificate helps UAE residents and businesses avoid double taxation on income earned abroad by utilizing the DTAs that the UAE has signed with various countries.
How to get a Tax Residency Certificate?
To obtain a Tax Residency Certificate (TRC) in the UAE, follow these steps:
Eligibility:
- Individuals: Must have been a UAE resident for at least 180 days within a 12-month period.
- Businesses: Must have been established in the UAE for at least one year.
Required Documents to get the Tax Residency Certificate:
- For Individuals:
- A copy of Passport and Emirates ID
- Valid residence permit – issued at least 183 days earlier
- A certified copy of the (residential) lease agreement / Tenancy contract
- Bank statement for six months of the required year
- Salary certificate / Income certificate
- Immigration Report: A report from the General Directorate of Residency and Foreign Affairs (GDRFA) or Federal Authority for Identity, Citizenship, Customs & Port Security (ICP), showing evidence of all entries into and exits from the UAE
- Tax forms (if any) from the country where the certificate needs to be submitted
- For Businesses/Legal Person:
- A copy of valid trade license
- Name of Authorized Signatory for the application, his passport copy, Emirates ID, and Permits of residence (Residence Visa Copy)
- A copy of Articles of Association and Memorandum of Association
- Audited Financial Statements
- Bank statement for six months of the required year
- A certified copy of the tenancy agreement (Ejari)
- If the certificate required in Special Template, the format of the Template
- The Legal person who should be conducting business activity for at least one year can apply for the Tax Residency Certificate or Tax Domicile Certificate.