UAE Tax Residency Certificate: Cost and Simplified Guide

Are you a tax resident in the United Arab Emirates (UAE) and want to benefit from Double Tax Avoidance Agreements (DTAA)? Well, you need a Tax Residency Certificate (TRC) to do so. 

In this blog post, we’ll guide you through the process of obtaining a TRC, highlight some rules for determining tax residency, and provide insight into the cost of getting one. 

Determining Tax Residency: What You Need to Know

Before diving into the process of obtaining a Tax Residency Certificate, let's clarify some rules on determining tax residency. 

The Ministry of Finance in the UAE recently issued a decision that clarifies the rules for determining tax residency. You are considered a tax resident of the UAE if you spend 183 or more days in the country in a continuous period of 12 months. 

But, did you know that having a permanent address is not a prerequisite to qualify for a TRC? The only requirement is that “such place must be continuously available to them”. 

Additionally, all days or parts of a day that you spend in the UAE will be counted in determining the 183-day threshold. 

With these rules in mind, let's move on to the steps to obtain a TRC. 

Step-by-Step Guide to Obtaining a Tax Residency Certificate

So, how can you apply for a TRC in the UAE through the FTA portal? Here’s how: 

1. Start by setting up an account on the Federal Tax Authority (FTA) website 
2. Once logged in, go to the 'Services' tab, 
3. Select 'Certificates' from the drop-down menu 
4. Choose 'Request for Tax Residency Certificate' 
5. Fill in the necessary fields. This includes your name, Emirates ID number, tax registration number (if available), and contact details 
6. Upload all the required documents (depending on you status: individual or legal entity) E.g. copy of your passport, Emirates ID, utility bill, tenancy contract, entry/exit certificate, trade license, bank statements, certificate of incorporation, memorandum of association, audited accounts, etc 
7. Double-check all the details in the application for accuracy before submitting 
8. Submit the application and pay the processing fee on the payment gateway 
9. Upon receiving your application, the FTA will review it. If your application is approved, the FTA will issue your TRC within a few days 
10. You will receive the TRC via email and you can also download it from your FTA account 

It’s important to keep in mind that the process may vary depending on the type of applicant applying for the TRC (Individual or legal entity). 

According to the FTA website, the application process takes on average 45 minutes to complete! 

How much is a TRC in UAE?

The cost of obtaining a TRC in the UAE varies depending on whether you are a tax registrant or a non-tax registrant, and whether you are an individual or a legal entity. The fees are as follows: 

• AED 50 AED for submission 
• AED 500 for all tax registrants 
• AED 1,000 for non-tax registrant natural persons 
• AED 1,750 for non-tax registrant legal persons 

The Wrap

Obtaining a Tax Residency Certificate in the UAE is a simple and straightforward process. By following the step-by-step guide above, you can easily apply for a TRC and benefit from Double Tax Avoidance Agreements. 

Nonetheless, with the low cost and clear benefits, it's definitely worth looking into if you're a tax resident in the UAE. 

Our team of experts is ready to help you navigate the tax landscape and ensure compliance with local laws and regulations. Contact us today to learn more.