A Tax Residency Certificate (TRC) is an official document issued by the Federal Tax Authority (FTA) in the United Arab Emirates (UAE), confirming that an individual or a legal entity is a tax resident in the UAE for a specific period. This certificate is a valuable document for individuals, businesses, and investors who seek to benefit from the UAE’s extensive network of double taxation avoidance agreements (DTAAs) with other countries.
Why is the TRC Important?
The primary purpose of the TRC is to avoid double taxation, which can occur when income is taxed both in the country where it is earned and in the taxpayer’s country of residence. With a TRC, residents in the UAE can legally claim tax relief or exemptions in accordance with the DTAAs signed between the UAE and other jurisdictions. This is particularly beneficial for multinational companies, investors with foreign income, and expatriates working in the UAE.
For example, if a UAE-resident company earns income in a country that has a DTAA with the UAE, presenting a TRC can help reduce or eliminate withholding taxes on dividends, interest, or royalties.
UAE’s Commitment to Global Tax Standards
The UAE introduced the TRC as part of its broader efforts to align with global tax compliance standards, enhance transparency, and promote economic cooperation. The issuance of TRCs demonstrates the UAE’s commitment to international frameworks such as the OECD’s Common Reporting Standard (CRS) and Base Erosion and Profit Shifting (BEPS) initiatives.
This move has helped position the UAE as a trusted and attractive destination for foreign investors, providing a tax-efficient business environment and fostering international trade relationships.
Who Can Apply for a TRC?
A TRC can be obtained by:
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Individuals who have been residents of the UAE for at least 183 days within the relevant financial year.
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Companies or entities established and actively operating in the UAE for at least one year.
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Free Zone entities with valid trade licenses and proof of business operations in the UAE.
Note: Offshore companies without physical presence or local operations are typically not eligible for a TRC.
Required Documents
To apply for a TRC, the following documents are generally required:
For Individuals:
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Copy of passport and UAE residence visa
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Emirates ID
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Entry and exit report from the General Directorate of Residency and Foreigners Affairs
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Proof of UAE residence (e.g., tenancy contract or title deed)
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Bank statements (usually six months)
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Salary certificate or source of income
For Companies:
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Valid trade license
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Establishment contract or MOA
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Lease agreement or property ownership documents
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Bank statements (usually six months)
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Audited financial statements
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Organizational chart
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Details of business activities and staff
Application Process
The application is submitted online through the FTA portal, and the review process typically takes 15–20 working days, depending on the completeness of the documents and eligibility. Once approved, the TRC is valid for one year and can be used to claim tax benefits in foreign jurisdictions.
Get Expert Help with Your TRC Application
Here at The Level Consulting, we specialize in helping individuals and businesses apply for and obtain their Tax Residency Certificates in the UAE. Our experienced team ensures your documents are complete, compliant, and submitted correctly, saving you time and avoiding unnecessary delays.
Whether you’re a resident, a business owner, or an investor, we’re here to guide you through the process from start to finish.
Contact us today or simply fill out the form below, and one of our consultants will get in touch with you shortly.
For more information or to ask questions, please contact our specialists via the link below.
