What is a Tax Residency Certificate?
A Tax Residency Certificate (TRC) — also known as a Tax Domicile Certificate — is an official document issued by the UAE’s Federal Tax Authority (FTA). It confirms that an individual or company is a tax resident of the UAE. The certificate allows eligible applicants to benefit from the UAE’s double taxation avoidance agreements (DTAs) with other countries.
This certificate is especially useful for companies and individuals engaged in cross-border trade, investment, or remote work. By holding a valid TRC, you can avoid being taxed in two different jurisdictions — a key advantage for international entrepreneurs and corporations.
Why is the Tax Residency Certificate Important?
The UAE has signed over 140 Double Taxation Avoidance Agreements with various countries. These agreements are designed to:
Prevent the same income from being taxed in two countries
Promote economic cooperation and investment
Strengthen international business partnerships
With a Tax Residency Certificate, businesses and individuals can legally claim exemptions or reduced tax rates on foreign income — such as dividends, royalties, and capital gains — in accordance with the DTA between the UAE and the respective country.
Who Can Apply for a TRC?
The UAE offers TRCs to:
1. Companies registered in the UAE
Including mainland, free zone, and offshore companies (if they have a physical office and operate within the country). The company must be active for at least one year before applying.
2. Individuals residing in the UAE
To qualify, individuals must have resided in the UAE for at least 183 days in the past 12 months and must hold a valid UAE residency visa.
Key Benefits of a UAE Tax Residency Certificate
Avoid Double Taxation: Legally protect income from being taxed in both the UAE and another country.
Enhance International Credibility: Establishes your business or personal status as a UAE-based tax resident.
Access Tax Treaties: Utilize preferential tax treatment under UAE’s DTAs.
Facilitates Global Operations: Especially for exporters, remote workers, and digital nomads working from the UAE.
Support Visa Applications or Bank Requirements: Often required by embassies, foreign tax authorities, or banks for legal and compliance purposes.
Tax Residency Certificate Requirements
Here are the common documents required:
For Companies:
Valid trade license copy
Emirates ID and passport copies of owners
Tenancy contract or Ejari (valid for at least 6 months)
Valid immigration establishment card
Bank statements for the last 6 months
Audited financial statements or certified financial report
Entry and exit report for the company representatives (if requested)
For Individuals:
Valid UAE residency visa and Emirates ID
Passport copy
Tenancy contract (Ejari) or title deed
Entry and exit report from UAE immigration (showing 183+ days)
Bank statements for the last 6 months
Salary certificate or income proof
Utility bills (DEWA or other services)
How to Apply for a Tax Residency Certificate in the UAE
The FTA’s online portal handles TRC applications. The process is as follows:
1. Register on the FTA website
Create an account and submit your application through the Tax Residency Certificate section.
2. Upload required documents
Ensure all documents are clear, complete, and meet the eligibility criteria.
3. Pay the application fee
Fees vary — typically around AED 500 for individuals and AED 1,000–2,000 for companies.
4. FTA Review & Approval
After document verification, the FTA usually issues the certificate within 5–10 working days.
5. Receive your TRC
Once approved, the certificate can be downloaded digitally or collected physically, depending on the preference.
Validity and Renewal
A TRC is valid for one year from the date of issue. Businesses and individuals must renew the certificate annually if they continue to claim tax benefits or need to prove tax residency.
Common Challenges and How to Avoid Them
Incomplete documentation: Ensure financial reports and residency proof are up to date.
Incorrect tenancy contract or Ejari: Contracts must be valid and match your visa.
Insufficient UAE presence: Individuals must demonstrate a minimum 183-day stay, tracked via immigration data.
Working with a professional business consultancy can streamline the process and avoid delays or rejections.
In an era of increasing global mobility and remote work, the UAE Tax Residency Certificate is a powerful tool. It not only helps individuals and companies manage tax liabilities but also adds a layer of legal protection and financial efficiency when operating internationally.
Whether you are a freelancer working remotely from Dubai, a multinational expanding in the Gulf, or a holding company managing overseas income, securing your TRC can lead to significant tax savings and enhanced credibility.
Need help applying for a Tax Residency Certificate in the UAE?
Our experts can assist you with document preparation, application filing, and compliance support — ensuring your certificate is issued smoothly and on time.
