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UAE Tax Residence Certificate

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uae tax residence certificate

At present, Business activities strengthen international trade links, but it also becomes complicated once you get caught up in the tax system. Due to this , businesses are now discussing the issue of double taxation. To address this issue, the concept of obtaining  a tax residency certificate in Dubai appears as a solution.

What is a UAE tax residence certificate?

Tax residency certificate or Tax domicile certificate is issued by the Ministry of finance .Corporate individuals can apply for tax residence certificate to avoid double taxation.UAE tax residency certificate is also called tax domicile certificate to take advantage of double taxation avoidance agreements signed by UAE. in order to ensure this , there is an agreement signed by different countries ,it is called DTAA; Double Taxation Avoidance Agreement. Once it is signed by two countries , it is typically to issue the Tax Residency Certificate or Tax Domicile Certificate to the eligible applicant by the Tax Authority.

Your Tax Residency Certificate in UAE can be quickly obtained easily with the help of Alsun, for services and translation, you can reduce the difficulty of taxation and benefit from the agreement of double taxation by obtaining a tax residency certificate in Dubai. Any business that has been starting in the country for at least a year , whether it is based on the mainland or in a free zone, is eligible to apply for the tax residency certificate. 

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Who can apply to get a UAE tax residence certificate or tax domicile certificate ?

uae tax residence certificate

For individuals, only a resident can apply for the tax residency certificate or tax domicile certificate in UAE when he or she has stayed in UAE for a period of nearly 180 days.

Time for application:

When the tax residency certificate or tax domicile certificate in UAE is applied, it will take 3_5 days to get the certificate.

What is the conclusion of Tax Residence in UAE?

Natural persons:

A natural person’s tax residency is concluded by many elements like their usual primary place of residence and the center of their financial and personal interests in a specific state. For this conclusion,it is necessary to meet specific requirements which are written in a decision from the minister.

  1. If the person is a permanent resident , a state is an individual’s primary place of residence.This means that a person’s primary place of residence and the center of financial and personal interests are used to conclude their tax residency in Dubai.
  2. If the state is where these interests are of most sustainable importance, it is also regarded as the center of their financial and personal interests. The origin of financial and personal interests is concluded by many factors , which includes a person’s relationships,cultural interests, place of businesses and property.
  3. A person may be considered as a tax resident of a state when they are physically present in UAE for 180 or 183 days or more a period of 12_month.
  4. If a person has resided in the state for 90 days within 12 months and when he is from UAE with valid permits,having nationality of the Gulf Cooperation Council, to this, he is one of these types
  • When an individual is a permanent resident of the state.
  • When he carries on employment or business activities in the state.

For condition 2 and 3 , any days or even part of a day on which the individual is physically present in the state are taken into consideration for counting the total number.

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For Legal person:

Legal person is considered as tax residents of the state when one of the next situation applies:

  1. It was acknowledged by state law. This means that the corporation was legitimately constituted inside the barriers of the state.
  2. If there is a valid agreement clearly between the state and another country to avoid double taxation, a legal person’s tax residency is conducted by the applicable state tax law.

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What are the documents required to get a tax residency certificate in the UAE?

uae tax residence certificate

There are many essential documents have to be conducted to get a tax residency certificate, these documents differ based on the parties; company, individual, investors,and housewives

TRC documents for company:

  • A copy of the trade license .
  • A copy of MOA, Memorandum of Association.
  • A copy of the company’s ,owners,partners,director’s passports,IDs and permits of residence.
  • Bank stamen for 6 months.
  • A certified copy of the lease agreement.
  • The organization structure of the company when it is not a sole company.
  • Audit statement for last year.

TRC requirements for individuals:

  • A copy of your passport, your UAE residence visa , and Emirates ID.
  • A copy of the Tenancy contract copy.
  • Latest salary or income certificate.
  • Valid residence permit.
  • A report from the General Directorate of residency and Foreign Affairs mentions the duration of the individual’s stay in UAE(nearly 180).
  • Tax report from the country where the certificate needs to be conducted.

TRC documents for investors:

  • Company license
  • Name of the partner
  • All other documents mentioned for individuals earlier.

TRC documents for couples or housewives

  • Marriage certificate.
  • Copy of passport and residency permits to both wife and husband.
  • Partners salary certificate and work contract.

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How to get a Tax Residency Certificate in the UAE?

To get a tax residency certificate , an online process needs to be followed by the applicant.there are many steps to get a TRC in Dubai:

Create an online account in the ministry of finance .

Fill out the application to get a UAE Tax Residence Certificate.

When the application is approved, you need to pay fees online.

Alsun will help you in getting a tax residency certificate in UAE. Alsun is one of the most professional and approved audit and accounting firms in Dubai.

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What is the validity of a tax residency certificate in Dubai?

The Tax Residency Certificate in Dubai is valid for one year starting from the day it is issued. This certificate , also known as TRC Dubai,is accepted by businesses and individuals. It’s important to know that offshore companies cannot obtain Tax Residency Certificates. These companies qualify for a tax exemption certificate.

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How much does a Tax Residency certificate UAE cost?

uae tax residence certificate

There are limited fees that must be paid through the e_Dirham Card to obtain the Tax Residency Certificate.

To submit the certificate:

  • Pay 2000 Dirhams +3 Dirhams.
  • You can pay following the approval of the ministry on the request.

To apply:

  • Pay 100 Dirhams+3 Dirhams
  • You should pay at the time of submission.

The importance of obtaining Tax Residency UAE

  • Obtaining a tax residency certificate is so important and essential : 
  • Income taxes for individuals and businesses are excluded.
  • Encouraging trade between countries.
  • Confirming a person’s or company’s standing in the UAE legal system.
  • Avoid paying additional taxes.
  • Improving bilateral trade relations.
  • Receiving multiple certifications for both individuals and companies.

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Looking for help with your Dubai tax residency?

You’re in the right place . Alsun is available to help you with everything you need from first till having a tax residency certificate UAE to applications and residency Contact us today and we’ll get to work. Our knowledgeable staff will make your job easier by getting the relevant documents and certifications to end the TRC procedure on time. 

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