VAT Advisory

What is a Tax Residency Certificate?

Tax Residency Certificates (TRCs) establish the tax residency of a natural or juridical person. TRCs are essential to advantage and avoid double tax on incomes earned in another jurisdiction. Many Double Tax Avoidance Agreements (DTAA) make TRCs mandatory to avail the reduced tax benefits. In the UAE, TRCs are issued by the FTA. With an aim to increase competitiveness and reduce or exempt taxes on income generated though business or investment in the UAE, the government of UAE has entered into about 193 DTAA and Bilateral Investment Treaties (as at 30 June 2021).

What are the requirements to obtain a Tax Residency Certificate?

The requirements to obtain a Tax Residency Certificate are different for an individual and a company. The documents required are:

Requirements for an individual

• Passport copy and valid visa copy issued at least 180 days earlier Emirates ID copy
• 6 months of personal UAE bank statements, stamped by the bank
• Passport copy and valid visa copy issued at least 180 days earlier Emirates ID copy
• 6 months of personal UAE bank statements, stamped by the bank
• Proof of income in UAE – e.g. employment agreement, share certificate, salary certificate
• A report from the General Directorate of Residency and Foreign Affairs (GDRFA), showing evidence of all entries into and exits from the UAE
• A copy of certified tenancy contract or title deed, valid for at least three months prior to application

The Tax Residency Certificate application fees are AED 2000, payable to the Ministry of Finance (MoF). These fees must be paid through UAE e-Dirham Card.

Requirements for a company

• Valid UAE Trade Licence – Mainland DED or Free zone – the company must have been active for over 1 year
• A copy of MOA (Memorandum of Association) for the company
• A copy of the Certificate of Incumbency for the company – normally the Chamber of Commerce certificate
• The Organisational chart structure of the company
• Certified commercial tenancy contract copy or title deed - valid for at least three months prior to application, a physical office space is mandatory (virtual office space will not be sufficient)
• Passport, valid UAE resident visa copy and Emirates ID of the company directors, shareholders or managers
• Latest certified audited financial statement or UAE company bank statements from the last 6 months, stamped by the bank

The Tax Residency Certificate application fees for a company are AED 10,000, payable to the Ministry of Finance (MoF), paid through e-Dirham Card.

How KPI Experts Assist You

• Assistance with acquisition of the TRC
• Verification of documents required to obtain the TRC
• Support and help with any other regulatory approvals and licences