How Can You Apply for the Tax Residency Certificate in UAE, Dubai?

UAE is known for the tax-friendly environment it provides to businesses and entrepreneurs. It is one of the factors that makes it more attractive on a global scale, whereby the entrepreneurs from all over the world look forward to starting their businesses in the UAE. Even though there is much tax-friendly legislation prevailing in the UAE, businesses are expected to stay compliant with all such regulations. If the entities fail to comply, then it would result in penalties and other legal consequences. The tax residency certificate is one such legislation that is important for the resident entities and businesses in the UAE, which is required to confirm the individual’s or business’s tax residence in the UAE. The main aim of this certificate is to avoid any double taxation under the treaty that has been entered into by the UAE with other nations. In this blog, you will be able to understand how to get the TRC in the UAE. Read ahead to know more about it.

Procedures To Be Followed to Get the TRC

In order to get the Tax Residency Certificate, some procedures are to be followed, which would enable the entities to obtain the certificate without any complexities or hassle. The procedures include the following:

• Evaluate the eligibility: The first procedure includes the evaluation of the eligibility. The entities applying for the TRC must ensure they are eligible for the TRC. If you are an individual, then you must have the UAE as your primary place of residence and the centre for all the financial interests. The qualification conditions for the residents must be met. On the other hand, if it is a company, then it will be a resident if the company is a tax resident under any of the prevailing tax regimes. Also, if the company is set up in the UAE itself, then also the resident criteria are met. Any other conditions as per the authorities must also be met.

• Apply for the TRC: The next procedure includes the application for the TRC with the authority. In order to apply for the TRC, the entities must have an account on the FTA portal where the application can be submitted. The entities can apply once the account is created by fulfilling all the procedures stated on the site.

• Maintaining the documents: The entities, after creating the account on the portal and starting the application for the TRC, must ensure that all the required documents, such as identity proofs, copies of trade licences, residence visas, copies of any certified establishment contracts, tenancy contracts, last six months of bank statement copies, etc., or whichever is demanded for the application, must be maintained during the application for the TRC. The requirements of the documents would differ based on the type of entity that is applying for the TRC.

• Submit the application and documents: Once it is ensured that all the documents are maintained for the TRC application, then the documents must be uploaded on the site with the application form, and it must be submitted, along with the registration fees, which are to be paid. Once submitted, it would take a week or less for the process, and the entity will receive the notification once the TRC is available.

The above-stated are the general procedures that are to be followed by the entities who are planning to apply for the TRC. Once the TRC is received, then the entities could avoid the double taxation. The entities must ensure that all the documents and information provided to the authority are accurate and correct, as if there is any discrepancy detected by the authority, then it would result in the revocation of the TRC.

You can also read: When and Why, You Should Hire CFO In Dubai, UAE?

How Can CDA Assist in Getting the TRC?

CDA’s expert team of tax professionals can assist you in getting all the required documents sorted and verify if the documents are up to date, thereby avoiding any discrepancy. The professionals will also assist you in the filing of the application for the TRC with the authority, whereby you could get the certificate with less hassle. The team at CDA is always on standby to provide you with the best services. You can approach the team at any time as per the requirement.

To discover more about our services, connect with us now.

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.