Nowadays, individuals and businesses can be a resident in more than one country. But your tax residency can only be in one country. A Tax Residency Certificate (TRC) in UAE proves that you are a tax resident of the UAE. It means you pay taxes in UAE and are not required to pay taxes in countries with which UAE has signed double taxation avoidance agreements (DTAA).
Individuals and companies can obtain tax residency certificates in UAE if they meet certain conditions. It means whatever business income they earn in UAE and from their offices in other countries, they are paying taxes on it in UAE and submit this tax residency certificate to the relevant authorities in the other countries.
A tax residency certificate is essential to avoid paying double taxes. The certificate also serves as a legal document of your identity in UAE. Thus, the TRC indirectly encourages bilateral business relations and international trade.
Cabinet Decision No. 85 of 2022, dated 2nd September 2022, requires tax residents in UAE to obtain a tax residency certificate in UAE. It became effective from 1st March 2023. The decision mentions the conditions and requirements for a natural or legal person in UAE to fulfil for classification as a tax resident.
To obtain a tax residency certificate in UAE, the individual or entity must apply to the FTA. If any DTT (Double Tax Treaty) or DTAA requires the fulfilment of extra conditions for determining the tax residency, such provisions apply.
A legal person is a UAE tax resident if it satisfies the below conditions:
A natural person is a tax resident in UAE if he/she meets the following criteria:
FAME Advisory is a prominent firm in UAE with tax consultancy and advisory, success planning, and business set-up services. We help our clients with our expertise and experience to ensure they focus on their core business. We also assist you in submitting an accurate and on-time application for a tax residency certificate in UAE.
We follow the below process to help you get a tax residency certificate in UAE by applying on the government portal.
The validity of this certificate is one year from the start of the financial year to its end. Thus, we help you enjoy a smooth, transparent, fast TRC application process. We handle it on your behalf to make it stress-free for you and your business.
An offshore company is a non-resident of the UAE for taxation matters. So, you cannot apply for a tax residency certificate in UAE.
Yes, a free zone company and an onshore company can apply for a tax residency certificate in UAE if it has been established in the country for at least a year and satisfies the conditions of tax residence.
Individuals must submit the following documents:
Companies must submit the following documents:
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