Tax Residency Certificate Dubai, UAE – Steps & Costs 

Tax Residency Certificate Dubai, UAE – Steps & Costs 

Introduction 

Living in the UAE can be a dream come true. Taxes are non-existent, salaries are great, and there is an abundance of opportunities that offer world-class frills and benefits. However, the thought of paying double taxes, once in the UAE and then again in your home country, is a serious disappointment. In a bid to enhance the appeal of moving to the UAE,  

the government has signed a Double Taxation Avoidance Agreements (DTAAs) with several countries. 

In essence, the treaty is designed to prevent individuals and legal entities from being taxed twice on one single income. However, there are certain details about the treaty that need to be understood.  

This guide outlines everything you need to know about how to get a Tax Residency Certificate in Dubai – from eligibility and required documentation to application and associated costs. 

What is Tax Residency Certification (TRC)? 

A Tax Residency Certificate (TRC) is an official document that confirms an individual’s tax residency status in a particular country. In the context of the UAE, a TRC indicates that the person is considered a tax resident of the UAE, even if the tax rate is 0%. This certificate is crucial for individuals looking to benefit from the Double Taxation Avoidance Agreement (DTAA) between the UAE and other countries, such as the United Kingdom. 

Individuals who wish to take advantage of the DTAA between the UAE and another country, such as the UK, need to present their TRC. By obtaining this certificate, they can prove their tax residency in the UAE, which can help in avoiding being taxed in their home country. 

Benefits of a Tax Residency Certificate 

Key benefits of obtaining a tax residency certificate include: 

  • It allows you to claim tax relief under the UAE’s Double Taxation Avoidance Agreements (DTAAs) with more than 130 countries, helping you avoid being taxed twice on the same income. 
  • It serves as official proof of tax residency, strengthening your position with both local and foreign tax authorities. 
  • It provides access to reduced withholding tax rates on income such as dividends, royalties, and interest earned abroad. 
  • It helps structure your international income and operations in a tax-efficient, compliant manner. 
  • It simplifies cross-border expansion by reducing unnecessary tax burdens when entering foreign markets. 

Who Can Apply for a Tax Residency Certificate in the UAE? 

Before starting your application, understand who typically requires a Tax Residency Certificate in the UAE and the reasons behind its growing significance. 

A TRC acts as an official confirmation of tax residency in the UAE and is primarily used to claim benefits under the Double Taxation Avoidance Agreements (DTAAs) signed between the UAE and other countries. These benefits often include partial or full exemption from foreign taxes on income generated abroad. 

The following categories of applicants commonly seek this certificate: 

  • Business Entities with Cross-Border Operations 

Companies operating across multiple jurisdictions often require a TRC to avoid double taxation on foreign-sourced income. Presenting the certificate to overseas tax authorities can help establish UAE tax residency and reduce or eliminate tax liabilities in other countries. 

  • Individual Professionals & Global Investors 

Executives, consultants, and entrepreneurs who spend a significant portion of the year in the UAE while maintaining income or investments abroad may need a TRC to clarify their tax obligations and benefit from treaty-based tax relief. 

  • Investment Holding Companies & Family Offices 

These entities frequently use the TRC as part of a broader international tax planning strategy. It helps ensure compliance with global tax reporting requirements while optimising their tax position across jurisdictions. 

UAE Tax Residency Certificate Requirements

Characteristic Individual Company 
Eligibility Primarily reside in UAE Registered and operating in the UAE 
Physical Presence 183 or 90 days compliance An active trade license required 
Required Documents Passport, visa, Emirates ID, proof of residence, immigration report, salary certificate, bank statements Trade license, MOA, bank statements, financial statements, tax returns, immigration report. 

How to apply for a tax residency certificate in Dubai? 

The application process for obtaining your certificate has been streamlined through the Federal Tax Authority’s digital platform. Here is a step-by-step breakdown of how to apply for TRC in Dubai: 

Step #1: Create an Account on the Ministry of Finance Portal 

Register your individual or corporate profile at mof.gov.ae. Create your account using your Emirates ID for individuals or trade license details for businesses.  

Step #2: Application Form Completion 

The online application form requires detailed information about your presence in the UAE and activities.  

  • For individuals, you must provide detailed information about your accommodation, employment or business activities, and the time you spent in the UAE. 
  • Business entities must provide info on their incorporation, management, and operations in the UAE. 

 Step #3: Document Submission  

Submit scanned copies of all necessary supporting documents through the digital platform depending on your applicant category.  

 Step #4: Fee Payment and Application Submission 

The application process involves two separate fees. Pay the initial application through the portal’s integrated payment system. Upon successful review and approval, you’ll receive a payment request for the certificate issuance fee before the actual certificate is released. 

Note: Fees may vary depending on whether you are applying as an individual or a business. 

Step #5: Application Review and Approval 

The Ministry typically processes applications within 3 to 7 working days, provided all documents are complete. 

Step #6. Receive Your Certificate

Once approved, you’ll receive your certificate digitally through the portal. The certificate includes your tax residency status, validity period, and official attestation from the UAE tax authorities. 

Validity and Renewal of a TRC  

The TRC is valid for 1 year. Every individual or legal entity must renew the tax residency certificate once it expires. The process for renewal of TRC remains the same process.

Required Documents and Form 

TAX Residency Certificate for Treaty purposes: 

Applicant Type Required Documents 
Natural Person Passport  Valid Residence Permit  Emirates ID (Name must match application)  Certified residential lease agreement  Source of income or salary certificate  Local bank statement (6 months within the financial year) Entry & exit report (from ICA or local authority)  Proof of permanent residence: Certified lease or electricity bill in applicant’s name Title deed (if owning the property)  Source of Income  Self-employed: Trade license & share certificate  Rental income: Lease agreement  Retired: Letter to FTA + proof of savings/investments  Sponsored by spouse: Salary certificate, marriage certificate, or sponsor’s income proof  
Legal Person Trade license  Memorandum of Association  Proof of authorization (MoA or Power of Attorney)  Audited financial report (certified, covers relevant year)  Certified office lease/tenancy contract  Local bank statement (6 months) 
Government Entity Decree / Government Decision / Trade license  Request letter from the government entity 

The applicant is a legal person or government entity applying for commercial activity certificate: 

  • Trade license 
  • Requesting letter issued by the applicant for Commercial Activities Certificates 

Service fee details for TRC 

The cost of a tax residency certificate in the UAE may vary for individuals and companies. As of the latest update: 

Tax Residency Certificate for treaty purposes: 

  • AED 50 for submission 
  • AED 500 for all tax registrants and those engaged in commercial activity 
  • AED 1,000 for non-tax registrant individuals 
  • AED 1,750 for non-tax registrant legal entities 

 
Tax Residency Certificate for domestic purposes:  

  • AED 50 submission fee 
  • AED 500 for all tax registrants and those engaged in commercial activities 
  • AED 1000 for natural persons who are non-tax registrants 
  • AED 1750 for legal persons who are non-tax registrants  

Commercial Activity Certificate: 

  • AED 500 

For printed certificates: 

  • Additional fees will be charged for each hard copy certificate requested for AED 250. 

Conclusion 

Now that you have a clear understanding of the process, documentation, and cost involved in obtaining a Tax Residency Certificate (TRC) in Dubai, it’s essential to approach the application with precision. While the steps may appear straightforward, each stage requires accuracy, compliance with UAE regulations, and the right documentation tailored to your specific profile, be it an individual or a business entity. 

This is where Stratrich Consulting can support you from end to end. From assessing your eligibility and gathering the required documents to guiding you through the Ministry of Finance portal, handling payments, and tracking your application until approval, we ensure the entire process is smooth and stress-free. 

With our expertise, you not only stay compliant but also unlock the full benefits of the UAE’s Double Taxation Avoidance Agreements with confidence. 

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