Among the world’s lowest tax rates, the UAE is well known for its appealing tax system. Both people and companies must obtain a Tax Residency Certificate (TRC) to take full advantage of these advantages and prevent double taxation. Obtaining benefits under the Double Tax Avoidance Agreements (DTAAs) between the UAE and other nations requires this certificate. The Tax Treaty Tax Residence Certificate and the Domestic Tax Residence Certificate are the two new TRC types added in recent revisions. To ensure compliance and strategic tax advantages, this post will address how to obtain the TRC with the help of the top business consultant in Dubai.  

Who is eligible to use a Tax Residency Certificate?  

The requirements for obtaining a Tax Residency Certificate vary depending on the individual and the organisation, as does the necessity for a Domestic or Tax Treaty TRC.  

Individuals 

To qualify for a Tax Treaty TRC, the following requirements must be fulfilled:  

• Individuals must maintain a legitimate UAE house visa.   

• An Emirates ID copy is required to verify the person’s identification.  

• A legally approved duplicate of the residential lease or rent agreement to serve as proof of residence.  

• Bank Statements: statements for the previous six months that the financial institution has stamped.  

• Evidence of income, such as profit or earnings certificates  

• Entry and Exit Report: provided by a local position authority body or the Federal Authority of Identity and Citizenship, providing comprehensive confirmation.  

Domestic TRCs: Day-counting requirements are more lenient for domestic TRCs.  

• Entry and Exit Report: provided by the local position authority organisation or the Federal Authority of Identity and Citizenship, attesting to  

• In-country day-counting over 183 days.  

• Possesses a valid UAE residence permit (or is a citizen of one of the GCC states), has been in the country for more than 90 days within the relevant 12-month period, and has either a permanent residence OR a job or company in the UAE.  

• Day-counting while in the nation for less than 90 days requires documentation of i) a primary or regular residence AND a hub of personal and financial interest. 

Companies   

A tax treaty TRC can be used by businesses established in the United Arab Emirates for at least 12 months. The following requirements must be fulfilled:  

Valid trade license.  

A certified copy of the created contract agreement must be provided.  

• Information about the managers and shareholders, such as passports, Emirates IDs, and housing visas.  

• Financial statements that have been audited for longer than a year.  

• Bank Statements: statements for the previous six months that the financial institution has stamped.  

• An authorised duplicate of the rental agreement or settlement to establish a substance close by.  

• If appropriate, tax forms from the United States on which the certificates wish to be presented.  

Domestic TRC: If a company meets the streamlined requirements listed below and has been based in the United Arab Emirates for a minimum of 12 months, it may also be eligible to apply for a domestic TRC.  

 

Valid Trade License  

Information about the managers and shareholders, such as passports, Emirates IDs, and housing visas.  

How long is a tax residency certificate legitimate? 

A UAE TRC is valid for an entire year following the date of issuance.  

What are a TRC’s fundamental advantages?  

A Tax Residency Certificate in the United Arab Emirates benefits people and organisations.  

• Avoiding Double Taxation: Possessing a Tax Residency Certificate entitles individuals and organisations to the benefits outlined in the agreements between the United Arab Emirates and other treaty-related U.S. states, preventing them from paying taxes on their income twice.  

• Benefits of Import-Export: It permits tax exemptions and benefits related to import-export procedures.  

• Legal Recognition: The certificates function as a criminal record of an individual’s or business’s status as a tax resident in the United Arab Emirates. 

Summary  

A tax residency certificate is a necessary document for individuals and organisations operating in the United Arab Emirates to benefit from double tax avoidance agreements or for modern banking and compliance needs. By obtaining those certifications, individuals and organisations can avoid paying double taxes, take advantage of import-export benefits, and gain a criminal image in the UAE for their tax residency.   

The software system allows for practice and the submission of several supporting papers. The certificates are valid for a year and must be renewed annually if benefits are to be claimed repeatedly. The Tax Residency Certificate generally helps international businesses and ensures tax compliance for individuals and organisations in the United Arab Emirates.  

Why choose ebs chartered accountants in Dubai?  

Expert tax guidance is provided by ebs chartered accountants, who can help you understand tax laws and expand your arsenal of effective tactics. We handle tax residency certificates, ensuring the timing of the last-minute paperwork is precise. Our trustworthy services also include bookkeeping, auditing, and accounting. Contact our knowledgeable staff for enlightening talks about tax residence in the United Arab Emirates or use uaetaxgpt for better understanding.