Obtaining a Tax Residence Certificate UAE can be beneficial in more than one ways, to reduce your taxes as well as undertake financial emigration . However, it is important to understand the process of obtaining a TRC UAE. Tax Residency Certificate UAE helps establishing residency for tax purposes.
| Purpose of UAE TRC | To get tax benefits, for financial immigration, prevent double taxation |
| Authority that issues TRC in UAE | Federal Tax Authority (FTA) approves the TRC application |
| Filing UAE TRC application | TRC application can be filed online. |
| Documents required for TRC | The documents required are Visa, Passport, proof of source of income in the UAE, etc. |
| Eligibility for UAE TRC for individual | Stay in the UAE for more than 183 days (but it can be obtained for less than 183 days as well in certain cases) |
| Eligibility for UAE TRC for company | Established in UAE for more than 1 year and audited financial records are essential. |
| Validity of TRC | TRC is valid for a year |
| TRC for future period in UAE | At present, TRC is not issued for future period in the UAE |
| TRC for Offshore companies in the UAE | Offshore companies are not eligible for TRC in the UAE. |
Introduction
This article covers information about what is a UAE TRC, what is the eligibility criteria of obtaining UAE Tax Residence Certificate, what are the benefits of obtaining this certificate Particularly getting the benefits of UAE tax treaties ,and relief from double taxation. We would also cover the required documents to obtain this certificate, the application process, as well as the potential challenges that may arise in the process of obtaining the certificate.
Tax Residence Certificate UAE is relevant, irrespective of whether you are an individual, entrepreneur, or business entity, which is living in the UAE / incorporated in the UAE, and is liable to taxation in more than one country.
- What is Tax Residence Certificate UAE?
- Importance of a Tax Residence Certificate UAE
- Eligibility criteria for an individual for obtaining a Tax Residence Certificate UAE (TRC)
- Documents required for obtaining a Tax Residence Certificate UAE
- Steps to apply for a Tax Residence Certificate UAE
- Time and fees for obtaining a UAE TRC
- Validity of a Tax Residency Certificate UAE
- Common mistakes to avoid while applying for a UAE Tax Residency Certificate
- Conclusion
- FAQs
What is Tax Residence Certificate UAE?
A Tax Residence Certificate UAE is a document issued by the UAE Federal Tax Authority (FTA) to individuals, entrepreneurs, and business entities who wish to establish their tax residency in the UAE. This certificate serves as a proof that you are a taxpayer in the.
To obtain a Tax Residence Certificate UAE , you must meet specific eligibility criteria, provide the necessary documents, and follow the application process outlined by the FTA.
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Importance of a Tax Residence Certificate UAE
A Tax Residence Certificate UAE is important for the following reasons:
- It allows you to access the benefit of attractive tax treaties that the UAE has signed with various countries.
- It helps to prevent double taxation, ensuring that you are not taxed on the same income in both the UAE and your home country.
- A UAE Tax Residence Certificate can provide you with relief from certain taxes in your home country
- A UAE Tax Residence Certificate is often required by financial institutions, both within the UAE and internationally.
- It is also essential for financial immigration.
Eligibility criteria for an Individual for obtaining a Tax Residence Certificate UAE (TRC)
To be eligible for a Tax Residency Certificate UAE, you need to meet specific criteria set in the UAE. These most important criteria is that the person is physically present in the UAE for 183 or more days in a financial year.
Though, if a person is not present in the UAE for 183 or more days, he can still be eligible to obtain TRC in the UAE. These are:
- Present in the UAE for more days but less than 183 days (i.e present for 90 – 182 days)
- Present in the UAE for less than 90 days
For each of these, the person has to provide different documents to ensure that they qualify for the period in the UAE.
For example: these include spending a certain number of days in the UAE, having a valid UAE residency visa, or providing proof of sufficient income or financial means to support your residency in the UAE.
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Eligibility criteria for a Company for obtaining a Tax Residence Certificate UAE (TRC)
The conditions are that the company should have been established for a year in the UAE. The accredited audit firm should audit the financial accounts of the company. The audited report should be the one that makes up the time period for which TRC is required. Though, offshores companies cannot obtain TRC in the UAE.
Documents required for obtaining a Tax Residence Certificate UAE
Obtaining a UAE TRC requires providing specific documents to support your application. While the exact requirements may vary based on your individual to company. Some common documents are valid passport, proof of source of income, bank statements, etc.,
It is essential to ensure that all documents are accurate, up-to-date, and meet the requirements specified. Any discrepancies or missing documents can delay the processing of your application or cause rejection of application.
Are you unsure on what are the specific documents required for Tax Residence Certificate? Contact us today.
Steps to apply for a Tax Residence Certificate UAE
The steps for applying for a UAE TRC are as follows:
- Gather all the required documents after ensuring that eligibility is met.
- Complete the application form with all the information and document attachments.
- Submit your application form.
- Pay the necessary application submission fees.
- Await the processing of your application by the FTA. The time taken for processing can be 3-7 business days.
- Once your application is approved by the FTA, you will have to pay the government fees.
- After the final payment, the Tax Residence Certificate UAE can be easily downloaded.
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Time and fees for obtaining a UAE TRC
The time for obtaining a Tax Residence Certificate UAE can vary depending on whether you require a hard copy of the certificate or the soft copy of the certificate. Generally, after submission of the application, it takes between 3-7 business days.
In terms of fees, the cost of obtaining a Tax Residency Certificate UAE varies depending on if you are a company or an individual or if you are a Tax Registrant in the UAE. The fees typically cover the application processing, issuance of the certificate, and any additional services like printed certificate requirement.
Validity of a Tax Residency Certificate UAE
A Tax Residence Certificate UAE is typically valid for a specific period for which it is applied for, after which it needs to be applied again. The process involves filing the TRC application again with the FTA.
It is crucial to keep track of the expiration date of your UAE TRC to ensure that the new application is filed timely. Failure to renew the certificate within the specified timeframe may result in loss of tax benefits.
Common mistakes to avoid when applying for a
UAE Tax Residency Certificate
These mistakes should be avoided while applying for Tax Residence Certificate:
- Incomplete or incorrect documentation: It is to be ensured that all the required documents are complete. Further, any missing or incorrect information can result in delays or rejection of your application.
- Non-compliance with eligibility criteria: It is essential to ensure that you fulfil the the eligibility criteria. Failing to meet the criteria can result in rejection of your application.
- Lack of proper planning: Applying for a Tax Residency Certificate UAE requires careful planning and preparation. This is because it requires gathering all the necessary documents, review the application process, and allow sufficient time for processing to avoid any last-minute complications.
- Ignoring updates and changes: UAE legal framework is continuously updating itself. It is, therefore, crucial to be informed about any updates in the laws that may impact the TRC application process.
Want to know more about TRC? Check it out here.
Conclusion
Obtaining a Tax Residence Certificate is a significant step towards establishing tax residency in the UAE and for financial immigration purposes. By understanding the requirements, gathering the necessary documents, and following the application process diligently, the TRC can be obtained in a timely manner.
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FAQs
1. How to get Tax Residence Certificate in the UAE?
We can assist you in obtaining Tax Residence Certificate in the UAE. You can contact us at [email protected] or +97155102 1335.
2. What is Tax Residency Certificate UAE?
Tax Residency Certificate UAE is a document issued by Federal Tax Authority (FTA) and is used to establish the residency of an individual in the UAE. Basically, it is used to avail tax benefits or for financial immigration purpose.
3. Who is UAE Tax Resident?
A UAE Tax Resident is the person who has been in the UAE for 183 or more days. A person who has been in the UAE for 90 days or less can also be considered as a UAE Resident if it fulfils certain conditions.
4. What is Tax Residency Certificate UAE cost?
The UAE Tax Residency Certificate cost varies on different factors like whether you are an individual or a company or you are a Tax Registrant in the UAE or if you require a printed UAE TRC. All these factors contribute to the final Government fees to be paid.
5. What are Tax Residence Certificate requirements?
The Tax Residency Certificate UAE requirements are certain specific documents like visa, passport, source of income, etc. However, it also requires the information for period of TRC. Further, if you want to know specific requirements for UAE TRC, you can contact us [email protected] or +97155102 1335.
