Tax Residency Certificate in UAE
In Dubai, a Tax Residency Certificate is an official document issued by the International Financial Relations and Ministry of finance. Today’s businesses are no longer limited by borders, the business sector has become privy to a global reach. The increase in cross-cultural business activities offers various perks and allows enriching business relationships on an international scale. However, there is a downside to becoming a general trader, you get taxed in different jurisdictions.
Since the total income is the revenue from countries which are independent. Each state is inclined to tax the income derived from its land. This often leads to double taxation. In order to protect businesses from capital loss. A resolution, the Double Tax Avoidance Agreement (DTAA) was adopted. The DTAA mandates the Federal tax authority to issue Tax Residence certificate UAE to enable residents and investors to enjoy the benefits of the treaty.
Who is eligible to get a Tax Residency Certificate in Dubai?
A Taxation Residency Certificate usually issued by the UAE Federal Tax Authority (FTA) to a company operating in the country to establish tax residency and allow it to benefit from the double taxation avoidance agreements.
All individual, onshore and free zone businesses are allowed to claim the Tax Residency Certificate after fulfilling certain conditions. However, UAE ministry of finance declared Offshore companies’ ineligible for tax residence certificate (TRC Dubai), they can only receive a tax exemption certificate instead.
In addition to business entities, a tax residency certificate is also available to individuals who have resided in the Dubai for at least 180 days and wish to establish a tax residence in the country. This is particularly beneficial for individuals whose home countries do not have a double taxation treaty with the UAE. But as mentioned above, conditions needed to fulfilled to apply.
List of the requirements that individuals are need to fulfill:
The following documents are required:
- Copies of your Valid passport and visa issued at least 180 days before.
- Copy of Emirates ID.
- Personal UAE bank statements of 6 months, stamped by the bank.
- valid proof of income resource in Dubai – e.g share certificate, employment agreement, salary slip.
- An immigration report from the Foreign Affairs (GDRFA) and General Directorate of Residency documenting all entries into and exits from the UAE.
- A copy of a certified rental agreement or title deed. Valid for at least three months before applying for TRC.
- Fees of the TRC application is AED 2000, which is payable to the FTA.
- Fees must be paid through e-Dirham Card of UAE.
List of the requirements that companies are need to fulfill:
For companies, there are also some certain conditions that need to be fulfilled by them before applying for TRC Dubai UAE. Any company cannot just simply request or apply for TRC without checking. Listed below are the conditions:
- Copy of the UAE trade license – Mainland or Freezone – the company must have been active for at least 1 year.
- Mandatory Onsite office not a flexi desk.
- A copy of Memorandum of Association for the company.
- Valid UAE resident visa copy, Passport and Emirates ID of the company directors, managers or shareholders.
- The most recent financial statement that has been certified or the bank statement of the UAE company for the last six months, which should be stamped by the bank.
- Certified commercial tenancy agreement copies or title deed – which should be valid for at least 3 months before applying.
- The TRC fees for a company are AED 10,000, Which is payable to the FTA. And should be paid through e-Dirham Card of UAE.
Process of Obtaining TRC
To obtain a TRC or Tax Residency UAE, an online process needs to be followed by the applicant. The steps include:
- Create an account on the FTA payables portal
- Fill out the application form
- Attach the required documents in PDF or JPEG format
- Your application and attached documents will be verified and if they meet the criteria, you will receive an email confirmation and be asked to pay the remaining fees through the system.
- After payment confirmation, you will receive a certificate by express courier.
How long does it take to obtain the TRC Dubai?
Assuming all relevant documents are available, the pre-approval process with FTA usually takes 4-5 business days. After pre-approval and confirmation that all documents are correct, the FTA may take an additional 5 working days to issue a certificate of tax residency.
The Tax Residence Certificate / Tax Domicile Certificate is valid for 1 year and can be renewed every year thereafter subject to a resubmission and renewal process.
Benefits of Tax Residency Certificate UAE
Obtaining a Tax Residence Certificate in UAE has several benefits. The Dubai government allows companies and individuals to hold various certificates. This allows income to be covered on both a corporate and individual level.
Other benefits of a tax registration certificate include:
- Avoidance of double taxation
- Get tax incentives in the UAE
- Avoid paying additional taxes through the import-export process
- Legal recognition of a company or individual in the United Arab Emirates
To support their goals and business development plan, the UAE has 115DTAA with several business numbers. This also means that there are various tax planning opportunities for companies and individuals with a valid tax residency certificate. Companies also gain access to international markets, especially when they set up their business in Dubai or Abu Dhabi.
How Beyond View can Help you to get your TRC?
If you want to get Your TRC in Dubai, Beyond View can help you achieve it seamlessly. Obtaining a UAE Tax Residence Certificate has several advantages. If you want to avoid paying income tax in your country of tax residence and also the UAE, it may be best to get the certificate as soon as possible after moving to the UAE.
Our professional staff here at Beyond view will make your job easier by getting the relevant documents and certifications to finish the Tax Residency Certificate application process on time. Also, if you need any sort of consultancy or assistance about obtaining the TRC as a company or individual or any sort of startup, you can Contact us and book a free consultation with our experts today.