Businesses must meet a number of standards to be in compliance with both local and international tax rules. The Tax Residency Certificate (TRC), also known as the Tax Domicile Certificate, verifies a company’s or legal entity’s country of tax residency.

What is the Tax Residency Certificate?

The UAE Ministry of Finance issues a Tax Residency Certificate, which certifies a person’s or company’s tax residency in the UAE. When your tax residency certificate is issued, it will be valid for a year.

If you create a Free Zone or Mainland company in the UAE, you will be eligible for a Tax Residency Certificate. Offshore corporations, often known as International Business corporations, cannot claim TRCs but can obtain a Tax Exemption Certificate.

Validity of UAE Tax Residency Certificate

The tax residence certificate UAE is valid for one year from the date of issuing. Corporations and individuals can use the Tax Residency Certificate Dubai (TRC Dubai).  Additional certificate applications might be made based on specific needs.

Offshore corporations are not eligible for tax residence certificates; thus, they should get a tax exemption certificate.

Procedures for Tax Residency Certificate UAE

To receive a tax residency certificate, the applicant must first complete an online application process. The steps are as follows.

• Open an account on the Federal Tax Authority’s (FTA) website.
• Fill out the form to apply for a UAE Tax Residence Certificate.
• Using digital formats such as PDF or JPEG to upload necessary paperwork
• Fees must be paid online when the application has been approved.
• Certificates are issued and delivered to the registered address via express courier.
• Requirements for certification of tax residence

As mentioned before, both people residing in the UAE and companies registered in the country can get a tax residency certificate. It is especially beneficial for those from countries that do not have a double tax treaty with the UAE, such as the United States. The TRC is a formal confirmation of a person or legal entity’s tax residency in the United Arab Emirates.

The requirements vary depending on whether the certificate of tax residence is for a person or a company.

Individuals who seek to obtain the TRC must meet the following requirements:

• A copy of your valid passport.
• A copy of your UAE resident visa.
• A copy of your Emirates ID.
• Six months of bank statements from the UAE.
• Valid proof of income in the UAE (job contract, salary certificate, etc.)
• Immigration report.
• Tenancy contract or title deed (certified copy)

Companies must also complete particular standards before getting a Tax Residency Certificate Abu Dhabi. Before applying, please check that you meet all of the requirements.Failure to do so may lead to your application being declined.

Companies who desire to obtain the TRC must meet the following requirements:

• A copy of the company’s valid trade licence.
• Tenancy agreement or title deed (must have been valid for at least three months prior to application).
• A physical office space.
• A copy of your valid passport.
• A copy of the Company’s Director/Manager’s visa and Emirates ID.
• An audited latest financial statement that includes the company’s UAE bank statements over the previous six months (marked by the bank).
• These documents will be submitted to the Ministry of Finance, which will complete the compliance process and give your Tax Residency Certificate in two to three weeks.

Benefits of Tax Residency Certificate in Dubai

This is an excellent opportunity to start a business in the UAE. One of the major factors that draws companies to the UAE is its competitive tax environment. Now that we’ve established why a tax residency certificate in the UAE is required, let’s look at why obtaining one is so important.

Individual and corporate income taxes are both exempt.

• It significantly increases international trade.
• It confirms a person’s or company’s legal recognition in the UAE.
• Avoid paying additional taxes during the import/export process.
• It contributes to the strengthening of bilateral business ties.
• Being a UAE resident entails avoiding double taxation and taking advantage of tax benefits.
• Individuals and companies can hold several certifications.

Looking for help with your Tax Residency Certificate Duabi? 

The tax rules require you to seek competent tax advice and guidance for the governance of your company. An effective tax plan offers an unbiased assessment of the business model and individual circumstances.

Smart Links welcomes any services related to UAE Tax Residency Certificates or Tax Domicile Certificates. Our skilled staff will make your task easy by obtaining the necessary documentation and certificates to complete the TRC procedure on time.