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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.
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.
Key benefits of obtaining a tax residency certificate include:
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:
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.
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.
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.
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. |
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:
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.
The online application form requires detailed information about your presence in the UAE and activities.
Submit scanned copies of all necessary supporting documents through the digital platform depending on your applicant category.
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.
The Ministry typically processes applications within 3 to 7 working days, provided all documents are complete.
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.
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:
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:
Tax Residency Certificate for domestic purposes:
Commercial Activity Certificate:
For printed certificates:
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.