Want to know how you can get a Tax Residence Certificate (TRC) in UAE? Well, no worries – as the guide is for you. Dive into the article to learn what is a TRC and how you can get it.
What is UAE Tax Residency Certificate?
Tax Residence Certificate (TRC), referred to the certificate that is obtained to get benefit from the double taxation avoidance agreements. The certificate – also titled "tax domicile certificate in UAE", is for individuals having residence in the UAE, an organization, or a legal entity. It is issued by the UAE's Ministry of Finance (MoF), that's gain to take benefits of a certain agreement of double taxation avoidance. This TRC has a year's validity once you receive it.
Why Do You Need a UAE Residence Certificate – TRC?
You may need to obtain TRC if you have income from more than one country. In such a case, your income could be taxable in both of the countries – which may be because of their national laws. In order to avoid paying double tax on the same income twice, you could go with an option to obtain TRC. TRC helps you avoid paying double tax, thus, you will be financially and economically benefitted from getting this TRC in UAE.
Who Is Eligible to Get a Tax Residency Certificate in UAE?
The Tax Residency Certificate can be issued to legal individuals and persons or eligible government entities. Free zone or mainland entities and resident individuals in the UAE may apply for this certificate being eligible. However, offshore companies cannot apply for the certificate as they usually don't have a physical presence in the UAE.
How to Get Tax Residence Certificate in Dubai - Procedure?
Companies and individual residents in the UAE are permitted to get their Dubai Residence Certificate or TRC that enables income to be covered both for the corporate level and individuals. Investors having residence in the UAE, get benefitted to have access to international markets once they set up their business in UAE. An additional benefit of getting a Tax Residence Certificate is to receive major tax incentives and avoid double taxation by having residence in the UAE.
Some major steps to get TRC are as below:
- No income and corporate tax
- Avoid double taxation in more than 100 countries.
- Tax advantages for trade purposes – import and export.
How to Get TRC in UAE?
You must be a registered user on the official website of the ministry to apply for the certificate. The information you will have to provide include:
- Mobile number
- Email address
- Registration in the system
After fulfilling all of the above-mentioned requirements, you can apply for the TRC certificate in the UAE to avoid paying double taxation.
Types of TRC in UAE
Furthermore, there are multiple ways by which you can obtain your Tax Residence Certificate in the UAE. The two major types of Tax Residency Certificate include:
TRC for Natural Person
To be eligible to obtain TRC in UAE an individual must have been a resident for at least 180 days and more. Documents that are essential to obtain TRC are as below:
- Copy of Emirates ID
- Source of Income
- Passport Copy
- Official Bank Statement
- Residence Copy
- Immigration Report of Residence
TRC for Legal Person
A legal person functioning in the UAE for at least a year can apply for the TRC. Documents that are essential to obtain TRC are as below:
- Trade License Copy
- Official Bank Statement
- Authorized signatory’s passport copy
- Authorized Signatory Emirates ID Copy
- Audited Financial Statement
- Certified Tenancy Contract
- Memorandum of association or any relevant document
The Cost of Tax Residence Certificate in UAE!
The estimated cost for the Tax Residence Certificate TRC in UAE would be AED 2000, that are payable to the Ministry of Finance. You can pay the TRC cost with UAE e-Dirham Card.
How to Avoid Tax in The Home Country On Earned Income in UAE?
By obtaining a TRC certificate in the UAE you can avoid paying double tax on the same income twice. It is the way towards avoiding double taxation on the same amount of income.
FAQ on UAE Tax Residence Certificate
What Is the Validity Period of TRC?
The validity period for the Tax Residence Certificate (TRC) is usually one year from the date you have received your certificate. After the expiry date of the certificate, you will have to obtain a new Tax Residence Certificate again.
Do You Need to Be in UAE to Get TRC?
To be eligible to obtain a Tax Residence Certificate you must stay for at least 183 days in UAE also meet all of the other requisite conditions.
How Long It Takes to Get TRC?
Usually, it takes a year to obtain a Tax Residence Certificate in the UAE once you have submitted the request.
Does an Offshore Company Need TRC?
Any individual or onshore company in the UAE can apply for the TRC certificate once they meet the eligibility criteria. However, offshore companies in the UAE don't need Tax Residence Certificate (TRC), as they don't usually have a physical presence in the UAE system. Nonetheless, it is best to consult with relevant authorities for good measures to ensure if you are missing out on something.
Can a Freezone company get UAE TRC?
All onshore and Freezone companies can apply to obtain TRC in the UAE through the Ministry of Information – MoI.
How Avyanco Can Help You To Get Your TRC?
If you want to get your Tax Certificate in UAE, Avyanco can help you achieve it seamlessly. Also, if you need any sort of assistance regarding obtaining the TRC as an individual resident in the UAE or a company, you can get in touch with us and let us help you get your TRC Certificate in UAE effectively. Avyanco is the most trusted and authentic service of all having direct connections and access to the relevant government and local departments and ministries that could help you with the entire process of getting TRC along with needed licenses and regulatory approvals.