An individual is required to provide a tax residency certificate Dubai (TRC), to benefit from the Double Tax Avoidance Agreement (DTAA) on income earned in the country. A TRC proves that the person is a resident of another country and subject to tax in that country. Private and public entities, investment companies, air transport, and other businesses running in the UAE, and different types of residents in the UAE can take advantage of the DTTA.
A tax residency certificate in the UAE is issued for individuals and companies, and eligible government entities to benefit from the DTTA to which the Emirates is a signatory. In October 2024, the Federal Tax Authority issued instructions for tax procedures on UAE Tax Resident and Rules on Tax Residency. The guide also gives instructions on how to get a Tax Residency Certificate for Natural and Juridical persons.
What are the Terms and Conditions of the Tax Residency Certificate Dubai?
Given below are the terms and conditions for getting a tax residency certificate in Dubai,
- The applicant is a legal person and requires the TRC for treaty purposes, established in the Emirates for at least a year.
- The applicant is a natural person and is getting a tax residency certificate (TRC) for treaty purposes and residing in the UAE for at least 6 months during the requested financial year.
- The applicant is a natural person and getting a TRC for domestic purposes, falling into the following category, and can still apply.
Stayed in the UAE for more than 6 months (less than 183 days but more than 90 days)
- Branches of foreign entities and foreign entities are not eligible to get a TRC certificate, as they are not required to be established in the UAE.
- The tax residency certificate does not cover a future period from the financial year’s selected start date. This condition applies to both domestic and treaty purposes.
Only government bodies are qualified to do so.
- A legal person must be registered for VAT for a commercial activity certificate.
What are the Key Steps to Apply for a Tax Residency Certificate Dubai?
Submission for the TRC in Dubai involves the following steps,
- Go to the Federal Tax Authority’s website to access the EmaraTax portal.
- You can use your current account on the EmaraTax Portal, create your account, or log in to an old account.
- Once you log in, select “Other Services”.
- Select the Tax Registration Number (TRN) you’re applying for. If there’s no TRN, select the last option “No TRN” ( selected Tax Registration Number lets the user autofill the details in the TRC portal based on the TRN.
- Select the type of certificate you requested.
- Complete the creation procedure, pay the required fees, and submit your application.
- The certificate processing fee is paid after getting approval from the FTA.
- If there is a special tax application that requires attestation from the FTA: (For TRC for treaty purposes only)
- An electronic special form can be attached to the application in the TRC portal. The form will be returned signed through the application.
- Send the form through courier with return service.
- Send the form through mail with return service.
- The taxpayer should fill out the form according to the application in the system, with reference to the financial year of the certificate.
- The applicant is required to pay the fees for sending and return of the documents.
What are the Required Forms and Documents for Tax Residency Certificate Dubai?
TRC for treaty purposes:
Applicant is a Natural Person – Tax Residency Certificate Dubai
- Passport
- Emirates ID
- Valid residency permit
- Attested copy of residential tenancy contract
- Source of income certificate
- Bank statement of the last 6 months within the financial year related to the request.
- Proof of permanent residence
- Entry and exit records from the FTA or a local government entity.
- Title deed of private property (if required)
Proof of Income:
- Self-employed individuals must provide a trade license and share certificate.
- If the applicant has a property and its earnings are a source of income, they need to provide the lease agreement if the property is leased.
- If the applicant is sponsored by their spouse, provide a marriage certificate, a salary certificate, or the sponsor’s income proof.
- A retired applicant provides a letter addressed to the FTA stating they’re using their bonds, savings, or investments. Additionally, they must provide a supporting document.
Applicant is a Legal Person – Tax Residency Certificate Dubai
A legal person needs to provide the following,
- Trade License
- MoA
- Proof of consent (MoA or power of attorney)
- Copy of audited financial report provided by an independent auditor approved by an audit company (the audited financial report must cover the requested financial year’s start date in the application form or the year before.
- Bank statement covering 6 months within the financial year related to the applicant’s request.
- Certified lease agreement or tenancy contract for the workplace.
Applicant is a Legal Person (Government Entity)
Applicant needs to provide the following,
- Trade license or copy of the decree or government decision.
- A person or a government entity issues a request letter.
Application by Legal or Government Entity
The applicant needs to provide the following documents,
- Business trade license
- Requesting a letter from the applicant for a certificate for commercial activities.
Tax Residency Certificate Dubai for Domestic Purposes
Electronically signed domestic certificates by the Federal Tax Authority’s authorized signatories, according to the cabinet decision No. 27 for the year 2023.
Applicant is a Natural Person and has stayed in the UAE for more than 183 days:
- passport
- Emirates ID/UAE residence visa (if available)
- Entry and exit record from the Federal Authority of Identity and Citizenship (ICP) or a local government body.
Applicant is a Natural Person and has stayed in the UAE for 90 or more days and less than 183 days:
- Emirates ID/ UAE residence visa (if available)
- Passport
- Entry and exit record from the Federal Authority of Identity and Citizenship (ICP) or a local government body.
- Salary certificate or source of income or proof of running a business in the UAE or evidence of permanent residence, i.e, EJARI, Title deed, utility bills, or tenancy contract.
Applicant is a Natural Person and has stayed in the UAE for less than 90 days, or in other situations:
- Emirates ID / UAE Residence visa (if available)
- Passport
- Entry and exit record form Federal Authority of Identity and Citizenship.
- Proof of personal and financial interests (Natural Person’s proof of place of occupation, cultural or other activities, social and familial relations, place of work, place from where the Natural Person’s property is managed, and other related facts which show the interest of the natural person is in the State).
- Proof of permanent residence, i.e, EJARI, Title deed, utility bills, or other tenancy contract.
How Much is the Service Fee?
Here is the breakdown of the fee requirement for the Tax Residency Certificate.
For Treaty Purposes
The Tax Residency Certificate for treaty purposes has the following fees,
- AED 50 for submitting your application
- AED 500 for commercial activity and tax registrants.
- AED 1000 for the non-tax registrant (Natural Person).
- AED 1750 for the non-tax registrant legal persons.
For Domestic Purposes
The Tax Residency Certificate for Domestic Purposes has the following charges,
- AED 50 for submitting the application form
- AED 500 for commercial activity and tax registrants.
- AED 1000 for non-tax registrant Natural Persons.
- AED 1750 for non-tax registrant Legal Persons.
Fee for Commercial Activity Certificate
A fee of AED 500 for a commercial activity certificate.
Fee for Printed Certificates
A fee of AED 250 will be charged if the applicant asks for a hard copy certificate.
Final Words
This guide has complete information regarding the procedure of getting a Tax Residency Certificate in Dubai. The FTA takes 5 business days for the application once the application is received and an additional 5 days if the applicant requires a hard copy of the certificate. Taxpayers must be aware of all guidelines regarding the application form.
Contact Al Riyady for further assistance regarding the TRC application form. Our expert team can also help you with Auditing Services, Accounting Services, Business Liquidation, and more.
