Residency Certificate

Tax Residency Certificate

This document is an important one for business owners who earn their income abroad and pay taxes in another country. It is referred to as the Double Tax Avoidance Agreement (DTAA) certificate, and it is available to nationals from countries that have signed this agreement with the UAE. This certificate is highly beneficial to those who are eligible for it, as it allows them to avoid being taxed twice on the same income. By obtaining this certificate, business owners can ensure that they are not unfairly taxed on their earnings, and can instead use those funds to further invest in their business and contribute to the local economy. So if you are a business owner who falls under these criteria, it is highly recommended that you obtain a DTAA certificate to ensure that you are not being taxed twice on your hard-earned income.

Who is Allowed to Have a Tax Residency Certificate?

The requirements for obtaining a Tax Residency Certificate are straightforward. For individuals, a valid passport and visa copies, Emirates ID copy, six-month UAE bank statement, and proof of income are needed. For companies, valid trade license copy, tenancy agreement or title deed certified copy, physical office space, copy of visa and Emirates ID of the company Director/Manager, latest financial statement or certified audited company’s UAE bank statements for the last six months, and application fees of AED 10,000 are required.

1. Create an account on the Federal Tax Authority (FTA) website.

2. Login to your account and click on the "Services" tab.

3. Click on "Certificates" and then "Request for Tax Residency Certificate".

4. Fill out the application form and upload the required documents.
The required documents are:
> Passport copy
> Valid Residence Permit copy
> Emirates ID copy
> A certified copy of residential lease agreement
> Source of income/salary certificate

5. A bank statement issued by a local bank covering 6 months within the financial year related to the request

6. Pay the application fee

7. The FTA will review your application and issue the TRC within a day.

Avoiding Double Taxation

Did you know that the United Arab Emirates (UAE) has established tax treaties with over 100 countries? These agreements have been put in place to prevent double taxation, which is when an individual or business is taxed on the same income in multiple countries. As a result of these treaties, those who are deemed tax residents of the UAE are only required to pay taxes on their income in the country, reducing their overall tax liability and benefiting businesses that operate in multiple countries.

To further support this system, the UAE government has implemented a tax residency certificate (TRC) program. A TRC is an official document that proves an individual or entity is a tax resident of the UAE. This certificate can be used to demonstrate that the individual or business is only required to pay taxes on their income in the UAE, and not in any other country where they may have operations or investments.