UAE Tax Residency Certificate (TRC)
A Tax Residency Certificate (TRC) in the UAE is an official document from the Federal Tax Authority (FTA). It shows that a person or a company lives in the UAE for tax purposes.
This certificate helps you avoid paying tax twice in two different countries. The UAE has many agreements with other countries, and the TRC is needed to use those benefits.
You can apply for the TRC online through the EmaraTax Portal. This is the FTA’s website where people and businesses can request:
- Tax Residency Certificate
- Commercial Activity Certificate
Your application for a UAE Tax Residency Certificate (TRC) is fully assisted by M N K Auditing.
What Is a Double Taxation Treaty?
Sometimes, a person or a company earns money in another country. Without any rules, they may have to pay tax twice—once in the country where they earned the money and again in the country where they live. This is called double taxation.
To stop this problem, countries create special agreements called Double Taxation Avoidance Agreements (DTAA). These agreements make sure the same income is not taxed twice.
The UAE has signed many of these agreements. The first one was with France, and later, the UAE also signed one with Qatar. Today, the UAE has 146 DTAs with different countries.
One of the benefits of these agreements is that you can apply for a Tax Residency Certificate (TRC) to prove you are a UAE tax resident.
Why Are DTAA Is Important?
DTAAs help countries work together. They make it easier for people and businesses to:
They clearly state which country can tax which type of income, such as
They also offer tax credits, exemptions, or lower tax rates, so you don’t pay more than you should.
Goods and Bads of a Tax Residency Certificate
Benefits of TRC:
Deduction of Double Taxation:
TRC gives individuals and businesses a chance to enjoy the Double Taxation Avoidance Agreement (DTAAS) negotiated by the UAE with various countries. Consequently, the same amount of income is not to be subject to taxation in two jurisdictions.
Enhanced Credibility:
It is treated as if possessing a tax residency certificate increases the credibility of an individual or even a business in the mind of the foreign tax authorities since it assures that the individual or the business is a tax resident in the UAE.
Minimized Withholding Taxes:
According to the provisions of the parties to the agreement on the matter, owners of TRCs are allowed to receive lower withholding tax on dividends, interest, royalties, and other types of income.
Tax Planning Effectiveness:
Individuals and organizations can potentially plan and organize their tax returns in a more efficient and effective way, and reduce their tax returns by using a TRC. Access to Worldwide Markets: DTAAs provide businesses with an increased competitive entry into the global markets, which reduces the tax burdens and increases the profitability levels.
Compliance with the Law
By having a TRC, you will ensure that you comply with the international tax laws and will help you to avoid the legal complications of tax residency and even taxation.
Tax Residency Certificates are of two kinds:
- Tax Residency Certificate for Treaty Purposes.
- Tax Residency Certificate for Domestic Purposes.
Forms and Documents Needed for a Tax Residency Certificate (TRC)
For Tax Treaty Purposes
1. If the Applicant is a Natural Person (Individual)
You must provide:
Basic Identity Documents
- Emirates ID (the name must match your application)
- Passport
- Valid UAE Residence Visa
Proof of Where You Live
- Residential Lease Agreement (Ejari)
- Electricity bill or lease certificate with your name
- Title deed if you own the property
- Entry and exit report from the FTA or a government authority
Proof of Income
- Salary certificate or proof of income
- Six-month bank statement from a UAE bank
- Proof of permanent place of residence
If You Are Self-Employed
Trade license
If You Earn From Property
- A copy of the rental contract that shows you receive rental income
If You Are Retired
- A letter to the FTA stating that you use your personal savings or investments
- Supporting documents for these investments
If Your Spouse Sponsors You
- Marriage certificate
- Proof of spouse’s income or their salary certificate
2. If the Applicant is a Legal Person (Company)
You must provide:
- Emirates ID and passport of the authorized signatory
- Trade license
- Memorandum of Association (MOA)
- Authorization documents (MOA or POA)
- Audited financial statements for the same fiscal year as the TRC request
- Certified lease agreement
- Six-month bank statement from a UAE bank
3. If the Applicant is a Government Entity
You must provide:
- Trade license, government decree, or official decision
- Request a letter from the government authority.
TRC for Domestic Purposes
These documents apply when you need a TRC inside the UAE under Cabinet Resolution No. 27 of 2023.
A. If You Stayed in the UAE for More Than 183 Days
You must provide:
- Passport (required), Emirates ID, or residence visa
- Entry and exit report from the ICA or a government authority
B. If You Stayed Between 90 and 183 Days
You must provide:
- Passport (required), Emirates ID, or residence visa
- Entry and exit report from ICA
- Proof of income: salary certificate, business proof, or earnings documents
- Proof of permanent residence: title deed, Ejari, utility bills, or long-term lease contract
C. If You Stayed Less Than 90 Days
You must provide:
- Passport (required), Emirates ID, or residence visa
- Entry and exit report
- Proof of financial and personal ties to the UAE (such as job, family, social activities, business relations, or managed properties)
- Proof of long-term stay: title deed, Ejari, utility bills, or long-term lease contract
New Criteria for Getting a Tax Residency Certificate (TRC)
1. For Legal Persons (Companies):
To apply for a TRC, a company must meet these conditions:
- The company must be active and legally existing for at least one full year.
- Its financial statements must be audited by an approved accounting or audit firm.
- The audit firm must stamp and certify the report.
- The financial statements must clearly show the financial year for which the TRC is needed.
- If the company is applying for the certificate during the current year, it must also attach the audit report of the previous year.
- The company must be engaged in real business activities inside the UAE.
2. For Natural Persons (Individuals)
A person must meet the following conditions:
- The person must be a UAE resident with their personal and economic ties in the country.
- To qualify as a tax resident, the individual must have spent 183 days or more in the UAE within the last 12 months.
- A person can also qualify with 90 to 182 days of stay, but only if they meet additional criteria set by the FTA.
- The individual must have a valid annual lease agreement registered with the correct authority—such as a free zone authority, municipality, or EJARI in Dubai.
Cost of Getting a Tax Residency Certificate (TRC) in the UAE
TRC Fees for Treaty Purposes
- Submission fee: AED 50
- Business and tax registrants: AED 500
- Non–tax-registered individuals: AED 1,000
- Non–tax-registered companies: AED 1,750
TRC Fees for Domestic Purposes
- Submission fee: AED 50
- Commercial activity and tax registrants: AED 500
- Non–tax-registered individuals: AED 1,000
- Non–tax-registered companies: AED 1,750
Extra Fee for Hard Copy
If you want a physical hard copy of the certificate, an additional AED 250 will be added to the total cost.
How to Make the Payment
The final step before downloading the TRC is the payment.
You can pay using:
- Credit card
- Debit card
- Google Pay
- Samsung Pay
Once the payment is completed, you can download your certificate.
TRC Validity in UAE
The Tax Residency Certificate (TRC) applies to the financial year chosen by an applicant. The certificate is not automatically renewed in that year. In case an applicant requires a certificate in another financial year, then he/she is required to make a new application.
Time Taken to Receive a Tax Residency Certificate in UAE
It can be a few weeks or a few months before a Tax Residency Certificate (TRC) is given out.
The timeline depends on:
- How fast the Federal Tax Authority (FTA) considers and grants your application
- Whether they need more information or documents from you
- How many other applications are they dealing with in the meantime
The countries that are eligible to obtain a tax residency certificate
In addition to this, some nations have signed a Double Taxation Agreement with the UAE to avoid charging taxes on the same income twice.
Those countries provide people and companies with an opportunity to evade paying two taxes using their Residency Certificate.
The list of countries with which the UAE has a Double Taxation Agreement is given below.
UAE Tax Residency Certificate (TRC) consultants
A Tax Residency Certificate (TRC) is highly essential to individuals and businesses that are liable to taxation in other countries. It assists in the establishment of the jurisdiction of paying taxes and the avoidance of paying the same tax on the same income. You also use this certificate to ensure that you are getting the laws of taxes right.
The process becomes simpler by means of a TRC expert, e.g., M N K Auditing, who will help with the tax preparation and documentation.
This is important in knowing your status in the tax agreements made by the UAE. It assists in maximizing the tax benefits. The actual procedure of acquiring a TRC, as well as the duration of time, explains why it has become such a major aspect of tax planning and the development of the economy.
It assists in better management of tax, facilitates international business conducting, and helps in the global economic growth by collaborating with Tax Residency Certificate (TRC) professionals in the UAE.
Tax Residency Certificates
A Tax Residency Certificate issued to a legal entity in the UAE includes the following details:
- Federal Tax Authority (FTA) logo
- Certificate number
- Date of submission
- Registered name of the entity
- Trade license issuing authority
- Trade license number
- Applicable tax treaty between the two countries
- Validity period of the certificate
- QR code for certificate authentication
TRC for Natural Persons
A tax residency certificate for individuals carries more personal details. It typically includes:
- QR code verification
- Federal Tax Authority logo
- Certificate number
- Date of submission
- Full name of the individual
- Nationality
- Passport number
- UAE visa number
- Supporting documents
- Applicable tax treaty between the UAE and the other country
- Certificate validity period
- QR code validity
Additional VAT & Tax Services by M N K Auditing
M N K Auditing provides a complete range of VAT and tax-related services in the UAE, including:
| VAT registration and VAT deregistration | VAT return filing | VAT compliance and record review | VAT advisory for businesses |
Corporate tax registration and filing | Assistance with TRC application and documentation | Guidance on double taxation agreements | Tax planning and compliance support |