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Tax Residency Certificate/Tax Domicile Certificate

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Tax Residency Certificate

The Tax Residence Certificate (TRC), also known as the Tax Domicile Certificate is a very important document, issued by the UAE Federal Tax Authority (FTA). It officially establishes that the company is considered a resident for tax purposes in the UAE. This certificate gives these companies the advantage of double taxation avoidance. The TRC certificate in Dubai is applicable to individuals, organizations and legal entities residing in the UAE.

How to Obtain a TRC Certificate in UAE?

The process of obtaining a TRC certificate, UAE is straightforward when you entrust the task to Corpin Consultants, one of the leading company formation consultants in Dubai, you don’t have to worry about the type of documents you need to gather to apply for the certificate. Our team guides you through the entire process so that you obtain the TRC swiftly. Described below in the criteria for obtaining the Tax residency certificate:

Natural Persons

For natural persons, the tax residency is evaluated on the basis of the person’s primary residence and his/her financial or personal interest within the state. Other important factors that are taken into account are the profession, relationships, cultural interests, place of occupation, etc.

Individuals are deemed to be a tax resident of the state, if they are physically present in the state for 183 days or more within the consecutive 12 months. This also holds true if the individual has resided in the state for 90 days consecutively in 12 months and holds a valid residency permit while meeting any of the following criteria:

Permanent residency in the state.
Engages in employment or business activities in the state.
For above conditions, any day or part of a day on which the individual is physically present in the state counts towards the total number of days considered for determining tax residency.

Juridical / Legal Persons/Companies

Any company operating on the UAE Mainland or in a Freezone and active for at least one year is eligible to apply for the TRC.
Offshore companies, however, are not eligible and must instead obtain a tax exemption certificate.
The legal person’s organization is established or acknowledged by UAE law and within the state’s boundaries.
The applicable state tax law establishes its tax residency.
If there is a valid double taxation agreement between the UAE and another jurisdiction, then the terms of the tax treaty will take precedence in determining the juridical person’s tax residency status.

The major advantage of TRC is that individuals and businesses can reduce their tax burdens through double taxation treaties. This prevents the same income from being taxed in multiple jurisdictions.

Documents Required for Tax Residency Certificate (TRC)

While documents that has to be submitted may vary depending on the applicant’s category, below are some typical documents that one need to have:

For Companies:

Certificate of incorporation.
Structure of corporate organization.
Copies of directors, shareholders, or managers’ passports and valid UAE residency visas.
Memorandum of Association.
Current UAE trade license (Mainland DED or Free Zone). It should be in operation for at least one year.
Most recent certified audited financial statements or bank statements for the past six months.

For Individuals:

Copy of the passport, UAE residence visa, and Emirates ID.
Latest salary certificate.
Last six months bank statement.
Residential lease agreement or tenancy contract copy.
Report from the General Directorate of Residency and Foreigners Affairs that denotes entries, exits, and the number of days stayed in the UAE.

For Investors:

Company license.
Partner’s name.
Other relevant documents as required.

For Housewives:

Marriage certificate.
Copies of passports and residency permits of both husband and wife.
Partner’s salary certificate and work contract.

Steps to Obtain a Tax Residency Certificate (TRC)

Access the FTA Portal, signup and login a Tax Certificate account.
Complete the application form for the tax residency certificate.
Submit the required documents in PDF or JPEG format.
Pay the application fee to complete the submission.
Check the application status on the dashboard.
Pre-approval typically takes 4-5 days, and the TRC certificate will be issued within 5-7 working days upon approval.
If a member of a tax group applies for the Tax Certificate, the user must enter the member’s TRN/TIN and email address.

A TRC certificate is a crucial document needed to save on the double taxes for those working in Dubai. Corpin Consultants can guide you through the process and help you obtain the certificate quickly and in compliance with UAE regulations. For more details, get on a free consultation call with us today!

Tax Residency Certificate/Tax Domicile Certificate

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