Tax Residency Certificate in UAE

The Ministry of Finance in the UAE is the government body responsible for issuing official documents, including the Tax Residency Certificate (TRC). This certificate is essential for individuals residing in the UAE and companies operating within the region.

What Is Tax Residency Certificate in UAE ?

The TRC is a certificate issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income to which the UAE is a signatory.

Tax Residency

Tax residency refers to the country where an individual or company is primarily considered a tax resident. This is often determined by factors like physical presence, economic ties, and citizenship.

Double Taxation

When an individual or company is considered a tax resident in two or more countries, it can lead to double taxation, where they are taxed on the same income by multiple jurisdictions.

Double Tax Avoidance Agreements (DTAs)

To mitigate the impact of double taxation, countries enter into DTAs. These agreements establish rules for allocating taxing rights between the countries, individuals and businesses are taxed only once on the same income.

Tax Residency Certificates and UAE

To claim benefits under a DTA, individuals and companies often need to obtain a Tax Residency Certificate from their country of tax residence. This certificate confirms their residency status and allows them to avail of treaty benefits.

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Documents Required for a Tax Residency Certificate in the UAE

The specific documents required for a Tax Residency Certificate (TRC) in the UAE can vary depending on individual circumstances. However, here are some common documents that are often needed:

For Individuals:

Passport: A valid copy of your passport.
Visa and Emirates ID: Copies of your UAE residence visa and Emirates ID.
Proof of Residence: A certified copy of your rental agreement or title deed of property in the UAE.
Bank Statements: Six months' worth of bank statements from a UAE bank.
Salary Certificate: A document from your employer confirming your salary and employment details.
Entry and Exit Stamps: Proof of your entry and exit stamps from the UAE.

For Companies:

Trade License: A valid trade license issued by the Department of Economic Development (DED) or a free zone authority.
Memorandum of Association (MOA): A certified copy of the company's MOA.
Financial Statements: Audited financial statements for the past year.
Bank Statements: Six months' worth of bank statements for the company's UAE bank account.
Shareholder Information: Details of shareholders, including their passports and visa copies.
Board Resolution: A board resolution authorizing the application for the TRC.