Tax residency certificate UAE
Secure your Tax Residency Certificate in the UAE with ease. Let ThinkBiz handle the process for you, ensuring compliance and peace of mind
What is a Tax Residency Certificate?
A Tax Residency Certificate (TRC) is an official document issued by the UAE Ministry of Finance that confirms the tax residency status of individuals residing in the UAE or businesses registered within the country. The certificate is valid for one year from the date of issuance.
If you establish a company in a UAE Free Zone or on the Mainland, you are eligible to apply for a Tax Residency Certificate. However, offshore companies, often referred to as International Business Companies (IBCs), are not eligible for a TRC. Instead, they can obtain a Tax Exemption Certificate. Some key advantages of holding a Tax Residency Certificate include:
Benefits of the Tax Residence Certificate (TRC)
Double Taxation Relief
Utilize the UAE's double taxation avoidance agreements to prevent paying income taxes in both the UAE and your home country.
US Tax Obligation
US citizens and permanent residents are still required to file tax returns, even if residing outside the US.
Compliance for CRS Countries
Establish your tax residency with the TRC to comply with the Common Reporting Standard (CRS).
Tax Reclaim
Reclaim taxes paid during the same year you became a UAE tax resident.
Fairness in Taxation
Ensures equitable tax practices for individuals and companies, contributing to the protection of the national economy.
Dubai Tax Residency Requirements
Individuals and companies based in the UAE can obtain a Tax Residence Certificate (TRC). This certificate is particularly beneficial for those from countries without a double tax avoidance agreement with the UAE, such as the United States. It serves as official proof of tax residency for both individuals and legal entities in the UAE.
The requirements to obtain a TRC vary depending on whether it’s for an individual or a business.
Dubai Tax Residency Requirements for Companies
To obtain a Tax Residence Certificate (TRC) in Dubai, companies must meet certain requirements. Ensuring that all conditions are fulfilled is crucial, as incomplete applications may be rejected.
| Individuals (required documents) | Companies (required documents) |
|---|---|
| A valid passport copy | A valid trade license copy |
| UAE residence visa copy | Tenancy agreement or title deed (valid for at least three months) |
| Emirates ID copy | Proof of physical office space |
| Six months of UAE bank statements | Passport copy of the company's Director/Manager |
| Proof of income (employment contract, salary certificate, etc.) | Visa and Emirates ID copy of the company's Director/Manager |
| Immigration report | Latest audited financial statement with stamped UAE bank statements for the last six months |
| Certified tenancy agreement or title deed | Certified tenancy agreement or title deed |
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FAQ’s
A Tax Residency Certificate (TRC) is an official document
issued by the UAE Ministry of Finance confirming an individual’s or
company’s tax residency in the UAE. It is typically valid for one year.
Individuals and companies based in the UAE, including those
in free zones and on the mainland, are eligible to apply for a TRC. Offshore
companies are not eligible and must obtain a Tax Exemption Certificate
instead.
Once all the required documents are submitted, the TRC is typically issued
within two to three weeks.
Yes, US citizens can obtain a TRC, but they are still required to file tax
returns with the IRS, even though they may qualify for tax benefits under
the double tax avoidance agreements.
Holding a TRC provides several benefits, including:
- Double Taxation Relief
- Compliance with the Common Reporting Standard (CRS)
- Tax Reclaim for taxes paid during the year you became a UAE tax resident
- Fair taxation practices contributing to national economic protection
No, offshore companies are not eligible for a TRC. Instead, they can apply
for a Tax Exemption Certificate.
A TRC allows you to benefit from the UAE’s double taxation
agreements with other countries, which prevents you from paying taxes on
the same income in both the UAE and your home country.
Yes, companies established in UAE-free zones are eligible to apply for
a TRC, provided they meet all the required criteria and documentation.