The UAE Tax Residence Certificate or UAE Taxation Residency Certificate (TRC) formally proves that there is a fiscal link between a citizen or legal entity and the state. Its obtainment is part of tax planning in UAE for any UAE business. That is, the certificate proves that the business is registered with the UAE government authorities and pays taxes.
The document exempts the legal entity from double taxation. Today, The UAE has valid double taxation agreements with 138 countries. As for individuals, the certificate can be an alternative proof of residency.
Tax Residence Certificate for UAE Company
Tax Residency Certificate UAE for company is given only to a resident company running in the country. A company operating in a domestic territory, or in a free zone may apply for a certificate. Offshore companies are not eligible to take advantage of such an agreement for avoiding double taxation and enjoy the benefits of obtaining Tax Residence Certificate.
All tax residence certificates in the UAE are without exception issued by the Federal Tax Authority, FTA. The procedure for applying can be done remotely, through the FTA’s web portal. There is a possibility to submit an application for a certificate of tax residency in the UAE after a year of working in the country.
Legal Entity as Tax Resident in Dubai
A company should only be considered as a tax resident in Dubai if it meets the following criteria:
- the company is registered in Dubai with the Department of Economic Development and holds a trading license for local business;
- the persons acting under the authority of the directors controlling the company are located in Dubai;
- the Company has a management centre in Dubai which is the place from where the Company is managed on a day-to-day basis.
Documents Required to Get Tax Residence Certificate for UAE Company
- a copy of the company’s trade license which entitles it to operate in the UAE;
- copies of the passport and Emirati identity card of the authorized persons;
- a copy of the company’s Articles of Incorporation and Foundation Agreement;
- audited financial statements for the year in which the individual wishes the company to be considered a UAE tax resident;
- the company’s bank statement;
- a certified copy of a lease contract for the office space where the company conducts its business;
- a one-year certificate from the date of fulfilment.
It’s worth noting that if there is a need to present the UAE company’s certificate of tax residency to any foreign party, which is always the case when there is a necessity for it for DTA benefits, it must be legalized specifically for the destination country.