Year after year we are witnessing increase of interest in relation to UAE tax residency. Tax residency in the UAE became even more popular in the recent years.
UAE Tax Residency Certificate (or TRC (for short) or UAE Tax Domicile certificate) is an official document issued by the UAE Ministry of Finance electronically (before mid-2018 it was a paper document) to individuals and corporate entities residing in the UAE. Based on this certificate, UAE tax resident can be relieved from taxes in his home country as he is considered a tax resident of the UAE. A certificate can be issued either in English or in Arabic. The validity and authenticity of the document can be verified online.
How Tax Residency Certificate looks like:
Old UAE Tax Residency Certificate Before July 2018
New UAE Tax Residency Certificate - Now Issued
As of today, tax residency in the UAE is not determined by the number of days resident spends inside the country but rather by the number of days of being the resident.
To qualify for tax residency individual has to obtain:
1). A UAE resident visa (link: How to get a UAE resident visa?),
2). Receive regular monthly payments into his/her bank account in the UAE (i.e. salary, etc.) (link: How to open a personal bank account?)and
3). Maintain resident status by entering the UAE not less than one time per half year.
UAE tax resident qualifies for Tax Residency Certificate (TRC) after six months since UAE resident visa is issued and stamped in individual’s passport, there is a 6-months bank statement and 6-months of the lease contract
UAE Tax Residency Certificate TRC is valid for a period of one year and since mid-2018 is issued electronically. Once the validity of a certificate expires a new certificate can be requested.
! Before you apply for UAE Tax Residency certificate and invest money, make sure the country you are preparing it for is in the list of the countries, that signed Avoidance of double taxation treaty with UAE.
As of today official web-site of UAE Ministry of Finance lists 55 countries that signed treaties with UAE on Avoidance of Double Taxation. Among these countries one can name the following: Cyprus / Kazakhstan / Ukraine / Belarus / Latvia / Turkmenistan / bekistan / Armenia / Tajikistan / Mongolia / Azerbaijan / Singapore / Austria / Poland / Germany / Finland / Italy / Czech / France / Belgium / Romania / Turkey / Luxembourg / Spain / Malta / Bosnia and Herzegovina / Mauritius / Seychelles / Canada / Netherlands / Bulgaria / China / Egypt / Algeria / Yemen / Tunis / Morocco / Sudan / Syria / Libya / Mozambique / Pakistan / India / Sri-Lanka / Philippines / Korea / Indonesia / Thailand /Malaysia / New Zealand
* We can provide you with copies of relevant treaties for your information upon your request.
UAE Tax Domicile Certificate is valid for 1 year and can be issued to an individual or a company that are residents of the United Arab Emirates. To apply and receive tax certificate one needs to submit a number of documents.
Documents required to apply for UAE Tax Domicile Certificate are listed below.
Documents required for individual applicants
Documents required for a corporate entity (at the time of application company shall be operational for not less than 1 year)
For Tax Certificate to be accepted by authorities in your home country, you will need to legalize the document in the Ministry of Foreign Affairs of UAE. Cost of legalization is AED 150 (USD 41) for individual documents and AED 2,000 (USD 548) for documents associated with corporate entities.
We will be delighted to assist and help you to obtain Tax Domicile Certificate as well as to advise you on the process.
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