The Tax Residency Certificate in the UAE is a document provided to business owners and entrepreneurs to help prevent double taxation. This document is applied for by individuals who are paying taxes in another country, wherein they have an income due to a business. As the UAE is a part of several Double Tax Avoidance Agreements with other countries, having such a certificate helps them avoid being taxed in both countries. Business owners can, therefore, avail of tax benefits by obtaining the Tax Residency Certificate.
Eligibility Criteria for TRC in UAE
- Natural persons: The applicant must have been a resident of the UAE for at least 180 days. Also an annual lease agreement officially documented by the competent authorities, such as EJARI in Dubai, municipalities in other Emirates and free zone authorities must be attached to the application.
- Legal persons: In order to be eligible to apply for a TRC, the legal person must have been established for a period of at least one year. Financial accounts must be audited or prepared by an accredited audit firm and attached with other required documents to the application. The report must be certified and stamped by the audit firm. The audited financial report to be attached to the application must cover the year for which the certificate is requested. If the certificate is requested for the present year, the audit report must be covering the past year.
* Note: Offshore companies are not allowed to apply for the service because they are not listed in the Double Taxation Avoidance agreements. Unless otherwise specified, the validity of this document is one year.
Documents Required for Tax Residency Certificate in UAE
For Companies
- Trade license
- Partners’ attachment
- Certified Establishment Contract
- Passport copy of the owners, partners and directors
- ID proof copy of the owners, partners and directors
- Residence permit copy of the owners, partners and directors
- Audited financial accounts
- Authorised bank statements of the last six months
- Verified lease agreement
- Details regarding the company’s organizational structure
For Individuals:
- Passport
- Valid Residence Permit and ID Proof
- Residential lease agreement/Rental Agreement or Registration Certificate
- Authorised bank statements of the last six months
- Salary Certificate
- GDRFA issued Exit and Entry report
- Tax forms of the country wherein the Domicile Certificate will be submitted
Things to Know About the Tax Residence Certificate
- The entire process takes around 14 to 21 days.
- Once completed, the Tax Residency Certificate is sent to you via your registered email-ID.
- Once you receive the certificate, it will remain valid for a year from the date of issue.
- While Onshore, Mainland and Free Zone Companies can apply for the Domicile Certificate, Offshore companies cannot, as they are not regarded as residents of the UAE.
- However, Offshore companies do have the option of applying for a Tax Exemption Certificate, in place of the TRC.
Benefits of Obtaining the Tax Residency Certificate in the UAE
- Avail of tax benefits associated with Double Taxation Avoidance Agreements.
- Helps avoid having to pay higher taxes, enabling you to save on valuable resources.
- In case you are a part of the CRS group of nations, the TRC helps with maintaining compliance.
- Allows you to claim excess taxes paid.
- Protects the national economy by ensuring fairness for both taxpayers and the government.
- Builds credibility and transparency for the company involved.
- Proves residency in the UAE, helping establish authenticity.
Our team of expert professionals at Alliance Prime can help you with every step of the process, enabling you to obtain the certificate with ease. We focus on customer satisfaction and do everything in our power to make sure you receive the best possible service. Furthermore, it is our commitment towards our clients and our strong work ethics that have enabled us to become one of UAE’s best tax accounting, bookkeeping and audit firms. With decades’ worth of experience in the field of finance and compliance in the UAE, our team will surely help you with every need you might have. We also go the extra mile to ensure the timely delivery of services and bring you the best service at the most reasonable prices. So, partner with us, at Alliance Prime, and lay to rest all your worries regarding taxation and compliance.
Why is Alliance Prime the best Tax Consultancy in Dubai?
Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. We stay up-to-date with the latest changes in laws and regulations in the UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime.
To obtain a TRC or related enquiry, visit alliance-acc.com or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com
