In today’s globalized world, securing tax benefits can significantly enhance your financial planning. For expats and businesses in Dubai, obtaining a Tax Residency Certificate (TRC) is essential to take advantage of Double Tax Avoidance Agreements (DTAA) and other fiscal benefits. This guide is designed to help you understand the importance of a TRC, the application process, and the necessary documentation required to secure this certificate in Dubai.
In this post, we’ll delve into what a Tax Residency Certificate is, its significance, and provide a comprehensive, step-by-step guide on how to obtain one. Whether you are an individual or a business entity, this guide will ensure a smooth application process.
What is a Tax Residency Certificate, and Why Does it Matter?
A Tax Residency Certificate (TRC) is an official document issued by the Federal Tax Authority (FTA) in the UAE. It confirms that the certificate holder is a tax resident of the UAE and is eligible to benefit from the Double Tax Avoidance Agreements (DTAA) that the UAE has signed with other countries. This is crucial for avoiding double taxation on income, which can lead to significant tax savings.
Having a TRC is particularly important for expats and businesses operating in Dubai as it ensures compliance with international tax regulations, enhances financial planning, and provides substantial tax relief. It is a critical document for anyone looking to maximize their tax efficiency in the UAE.
How to Obtain a Tax Residency Certificate in Dubai
Obtaining a TRC in Dubai involves several steps, from understanding eligibility criteria to gathering required documents and navigating the application process. Here’s a detailed breakdown:
Step 1: Determine Your Eligibility
Before you start the application process, ensure that you meet the eligibility criteria:
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For Individuals: Must have resided in the UAE for at least 183 days during the requested financial year.
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For Legal Entities: Must be established in the UAE for at least one year.
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Exclusions: Branches of foreign companies and offshore companies are not eligible for a TRC.
Step 2: Gather Required Documents
The documentation varies slightly between individuals and legal entities. Here’s what you need:
For Individuals:
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Passport
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Valid Residence Permit
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Emirates ID (EID filled must match the name on the card for verification)
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Certified residential lease agreement
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Source of income/salary certificate
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Bank statement from a local bank covering six months within the financial year
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Entry and exit report from the Federal Authority for Identity and Citizenship
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Proof of Permanent Place of Residence
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Source of Income
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Self-Employed Individuals: Provide a trade license and share certificate.
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Property Owners: If using property earnings as income, submit a lease agreement if the property is leased.
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Retirees: Submit a letter addressed to the FTA stating that the applicant is using their own savings, bonds, or investments, along with an official supporting document.
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Sponsored Individuals: If sponsored by a spouse, provide a salary certificate, marriage certificate, or proof of income from the sponsor.
For Legal Entities:
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Trade License
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Memorandum of Association
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Proof of Authorization (Power of Attorney)
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Audited financial report
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Certified lease agreement/tenancy contract for the office
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Bank statement from a local bank covering six months within the financial year
Applicant is a legal person – Government entity:
Tax Residency Certificate for Domestic Purposes:
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Applicant is a Natural Person Spent in the UAE Above 183 Days:
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Applicant is a Natural Person Spent in the UAE Less Than 183 Days, and Equal to or More Than 90 Days:
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Passport (mandatory) and Emirates ID/UAE Visa Residence if available.
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Entry and Exit Report from the Federal Authority of Identity and Citizenship or a local competent government entity.
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Source of Income/Salary Certificate or other proof of carrying on a business in the UAE.
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Proof of Permanent Place of Residence: Title deed, EJARI, utility bills, or other long-term rent contracts.
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Applicant is a Natural Person Spent in the UAE Less Than 90 Days or Other Situations:
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Passport (mandatory) and Emirates ID/UAE Visa Residence if available.
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Entry and Exit Report from the Federal Authority of Identity and Citizenship.
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Proof of Financial and Personal Interests: Consider the place of the natural person’s occupation, familial and social relations, cultural or other activities, place of business, place from which the property of the natural person is administered, and any other relevant facts and circumstances to determine if the natural person’s center of financial and personal interests is in the State.
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Proof of Permanent Place of Residence: Title deed, EJARI, utility bills, or other long-term rent contracts.
Step 3: Access the TRC Platform
Visit the TRC or CAC platform at https://trc.tax.gov.ae/TRC_Th. The platform is accessible 24/7, allowing you to submit your application at your convenience. Step 4: Submit Your Application
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Log in to EmaraTax Portal: Create a new account or link an existing account related to previous TRC applications.
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Select “Other Services”: Navigate to the TRC application section.
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Fill in Details: Choose the type of certificate you are applying for (TRC or CAC), and complete the application form.
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Upload Documents: Ensure all required documents are uploaded correctly.
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Pay Submission Fee: Pay the applicable submission fees online.
Step 5: Await Approval and Pay Processing Fees
Once your application is submitted, the FTA will review it within five business days. Upon approval, you will need to pay the certificate processing fees:
Tax Residency Certificate:
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AED 50 for submission
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AED 500 for tax registrants and commercial activity
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AED 1,000 for non-tax registrant natural persons
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AED 1,750 for non-tax registrant legal persons.
Commercial Activities Certificate: AED 500.
Step 6: Receive Your Certificate
After the payment is processed, the TRC will be issued. You can download the digital certificate from the TRC platform. If you require a printed copy, specify the number of copies and pay an additional fee of AED 250 per copy. The printed certificates will be delivered via Emirates Post.
Tips and Reminders for Obtaining a TRC
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Double-Check Documents: Ensure all documents are current and correctly uploaded to avoid application delays.
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Understand the Fees: Be aware of the various fees associated with the application and ensure you have the funds ready.
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Monitor Application Status: Regularly check the TRC platform for updates on your application status.
Closing
Securing a Tax Residency Certificate in Dubai is a valuable step for expats and businesses aiming to optimize their tax benefits. By following this step-by-step guide, you can streamline the application process and ensure compliance with the UAE’s tax regulations. For further assistance, consider consulting with a tax professional or legal advisor to help navigate the complexities of international tax law. For more detailed information and assistance, visit the official FTA website.
Ready to optimize your tax liabilities and take advantage of the UAE's tax treaties? Contact Virtual Accountant LLC today for expert guidance and support in obtaining your Tax Residency Certificate in Dubai. 
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