How To Get Tax Residency Certificate In UAE Professionally

Obtaining a Tax Residency Certificate is necessary for maximizing financial benefits and ensuring compliance with international tax laws. At Alsun, we excel in providing expert guidance and seamless support throughout this process. Our seasoned tax professionals are dedicated to helping you unlock the advantages of the UAE’s Double Taxation Avoidance Agreements, minimize tax liabilities, and enhance financial planning. 

What is a Tax Residency Certificate (RTC)?

A Tax Residency Certificate (RTC), also known as a Tax Domicile Certificate, is an official document issued by the Federal Tax Authority (FTA) in the United Arab Emirates (UAE). This certificate is necessary for individuals and businesses who want to benefit from the UAE’s extensive network of Double Taxation Avoidance Agreements (DTAA) with other countries.

Documents Required to Obtain a Tax Residency Certificate

How to get tax residency certificate in UAE? Obtaining a Tax Residency Certificate (RTC) in the UAE involves submitting specific documents depending on whether you are an individual, a company, an investor, etc. 

1. How to get tax residency certificate in UAE for companies?

• Trade License: A copy of the company’s valid trade license.
• Establishment Contract: A certified copy of the company’s establishment contract, if applicable.
• Memorandum of Association: A certified copy of the memorandum of association and any amendments.
• Bank Statements: Bank statements for the last six months.
• Lease Agreement: A copy of the lease agreement or proof of company premises ownership.
• Tax Forms: Any tax forms required by the country with which the UAE has a DTAA, if applicable.

2. How to get tax residency certificate in UAE for individuals?

• Passport Copy: A copy of the individual’s passport, including the visa page.
• Emirates ID: A copy of the Emirates ID.
• Residency Proof: Proof of residency in the UAE for at least 183 days, such as utility bills or a tenancy contract.
• Bank Statements: Bank statements showing transactions for the last six months.
• Salary Certificate: A salary certificate or employment contract if the individual is employed.
• Travel History: A travel history report from the Federal Authority for Identity and Citizenship.

3. How to get tax residency certificate in UAE for investors

• Investment Proof: Documents proving investment in the UAE, such as share certificates or proof of ownership in a UAE-based company.
• Bank Statements: Bank statements showing transactions for the last six months.
• Passport Copy: A copy of the investor’s passport, including the visa page.
• Emirates ID: A copy of the Emirates ID.
• Residency Proof: Proof of residency in the UAE for at least 180 days, such as utility bills or a tenancy contract.
• Financial Statements: Financial statements of the invested company, if applicable.

How To Get Tax Residency Certificate In UAE?

Obtaining a Tax Residency Certificate (RTC) in the UAE is straightforward and involves several key steps. Here is a detailed guide on acquiring this certificate, whether you are an individual, a company, an investor, or a housewife.

1. Determine Eligibility: Terms and conditions for TRC

• Individuals: Must have resided in the UAE for at least 183 days in the past 12 months.
• Companies: Must have been operational in the UAE for at least one year.
• Investors and Housewives: Must meet specific residency and investment or family status criteria.

2. Gather Required Documents

Collect all necessary documents outlined in the previous section for individuals, companies, investors, etc.

3. Register on the FTA Portal

• Visit the FTA website and create an account if you do not already have one.
• Log in to your account to start the application process.

4. Submit the Application

Complete the online application form with the necessary details. Scan and upload all required documents, ensuring they are clear and legible.

5. Pay the Application Fee

Pay the required fee using the available payment methods on the FTA portal. The fee amount may vary, so check the current fee on the FTA website.

6. Application Review and Approval

The Federal Tax Authority (FTA) will review your application and documents, which may take several weeks. Should additional information or clarification be required, you will be contacted accordingly.

7. Receive Your RTC

• Once approved, you will receive your Tax Residency Certificate, which can be downloaded from the FTA portal.
• Keep both digital and printed copies for your records and use them as needed for tax purposes.

Benefits of Acquiring a Tax Residency Certificate in UAE

Before we discuss how to get tax residency certificate in UAE, let’s explore its advantages. Obtaining an RTC in the UAE offers several significant benefits for individuals, companies, investors, and housewives, including:

1. Avoidance of Double Taxation

One of the primary benefits of an RTC is avoiding double taxation on income. The UAE has a robust network of Double Taxation Avoidance Agreements (DTAAs) with numerous countries. An RTC confirms that you are a tax resident of the UAE, allowing you to benefit from these agreements.

By avoiding double taxation, you can ensure your income is not taxed twice—once in the UAE and again in another country. This leads to significant tax savings and a more favorable financial outcome.

2. Enhanced Financial Planning

With a valid RTC, individuals and businesses can better plan their financial strategies. Knowing your tax residency status helps in accurate tax reporting and planning.

3. Streamlined Tax Compliance

The RTC simplifies tax compliance by clearly establishing your tax residency status. This helps in fulfilling tax obligations in other countries where you might have income or business interests.

Clear documentation of your tax residency status reduces the risk of disputes with tax authorities and ensures compliance with international tax regulations.

4. Facilitation of International Business Operations

The RTC can facilitate smoother international business operations for companies. It establishes the UAE as a tax residency country, which can be advantageous when negotiating international contracts and agreements.

This can enhance credibility and ease of doing business internationally, as many global partners and investors prefer dealing with entities with clear tax residency status.

5. Reduction in Withholding Taxes

The RTC can help reduce or eliminate withholding taxes on income received from foreign sources. Due to DTAAs, many countries apply reduced withholding tax rates on income received by UAE tax residents.

6- Ease of Financial Transactions

Having an RTC can facilitate smoother financial transactions, both domestically and internationally. It provides a clear and recognized tax status that can be important for financial institutions and regulatory bodies.

How To Get Tax Residency Certificate In UAE Successfully?

• Ensure all details in your application are accurate and consistent with the provided documents.
• Submit a complete set of required documents to avoid delays.
• Consider seeking help from a tax professional or consultancy to ensure your application is thorough and meets all requirements.

Cost of Obtaining a Tax Residency Certificate UAE

The cost of obtaining a Tax Residency Certificate (TRC) in the UAE varies based on your tax registration status and whether you are an individual or a legal entity. The fees are structured as follows:

• AED 50 for submission.
• AED 500 for all tax registrants.
• AED 1,000 for non-tax registrant individuals.
• AED 1,750 for non-tax registrant legal entities.

Time Span for Obtaining a Tax Residency Certificate in UAE

Obtaining a Tax Residency Certificate (RTC) in the UAE involves several steps, each with its own timeframe. Here is a detailed overview of the time span involved in securing an RTC:

• Document Gathering: 1-2 weeks.
• Online Application: 1-2 days.
• FTA Review: 2-4 weeks.
• Approval and Issuance: 1 week.

How To Get Tax Residency Certificate In UAE Quickly?

While obtaining a Tax Residency Certificate in the UAE typically takes 4 to 7 weeks, being well-prepared and proactive can help expedite the process. By understanding the timeframes for each phase and taking steps to ensure a smooth application, you can secure your RTC efficiently and benefit from its tax advantages.

Tips for Timely Completion

• Start preparing the necessary documents in advance.
• Ensure all documents are accurate and meet the FTA’s requirements to avoid rejections or resubmission requests.
• Check the FTA portal for updates on your application status and respond quickly to any communication from the FTA.

Validity of Tax Residency Certificate

When you obtain a Tax Residency Certificate (RTC) in the UAE, it is necessary to understand its validity period and the requirements for renewal. 

Validity Period

1. Duration:

The RTC is typically valid for one year from the date of issuance. This one-year validity applies uniformly to individuals, companies, investors, and housewives.

2. Usage:

The certificate can be used within this period to avail of benefits under the Double Taxation Avoidance Agreements (DTAA) that the UAE has with other countries. This includes avoiding double taxation on income earned in the UAE and abroad.

Renewal Process

To maintain the benefits the RTC provides, renewing the certificate before it expires is essential. Here are the steps for renewal:

1. Gather updated documents similar to those required for the initial application. These may include recent bank statements, proof of continued residency, updated business licenses, and financial statements.
2. Log in to the Federal Tax Authority (FTA) portal using your existing account and fill out the application form
3. Upload the required documents. Make sure they reflect the most recent financial year and current residency status.
4. Pay the renewal fee, typically the same as the initial application fee.
5. The FTA will review the renewal application and documents.

The renewed RTC will be issued upon approval, extending its validity for another year.

Best Tax Residency Certificate Services in UAE

At Alsun Tax Agency in UAE, our seasoned tax professionals are dedicated to delivering exceptional services. We possess extensive knowledge of UAE tax laws, ensuring your tax residency certificate application is accurate and efficient. Trust our experts to handle your tax needs with precision and professionalism.

Seamless Application Process

We guarantee a seamless and stress-free application process for obtaining your tax residency certificate. Our streamlined procedures and meticulous attention to detail ensure all necessary documents are accurately prepared and submitted on time, saving you time and hassle.

Personalized Support

At Alsun, we provide tailored solutions to your unique tax residency needs. Our dedicated team is always available to answer your questions, offer expert advice, and guide you through every step of the process, ensuring a smooth experience.

Comprehensive Review

We offer comprehensive document review services to ensure all your paperwork is complete and accurate. Our thorough review process minimizes the risk of delays or rejections, providing you with peace of mind and confidence in your tax residency certificate application.

Competitive Pricing

We offer competitive pricing for our tax residency certificate services, providing exceptional value for your investment. At Alsun, we believe in transparency and affordability, ensuring you receive top-quality at affordable prices.

Conclusion

Obtaining a Tax Residency Certificate in the UAE is valuable for individuals and businesses looking to benefit from the country’s extensive Double Taxation Avoidance Agreements. While the application process is straightforward, it requires careful preparation and accurate documentation. At Alsun, we ensure a seamless and efficient experience for you. With our expertise and personalized support, we make obtaining your tax residency certificate in the UAE a hassle-free process.

How To Get Tax Residency Certificate In UAE – FAQs