How to get UAE Tax Residence Certificate (TRC) UAE
One can obtain UAE Tax Residence Certificate (TRC) by making an online application to the UAE Federal Tax Authority . A TRC is issued by the FTA to individuals, companies or other entities , who are eligible for obtaining it, after verification of various documents like income proof, proof of residence/ business in the UAE amongst others. A UAE tax residency certificate is an evidence that an individual or company is a tax resident of UAE , under the domestic laws of the UAE or Tax Treaty entered into by UAE . Such TRC also helps individuals, to stop their taxation in their own country, who have now become UAE Tax resident, or intend to claim benefit under the Double Tax Avoidance Agreement (DTAA) .
What is the Process to obtain UAE Tax Residence Certificate (TRC)
The TRC in UAE is issued by UAE Federal Tax Authority . The applicant has to make an application on the Emara Tax portal, provide required documents and make necessary payment towards TRC issuance fees. UAE TRC is issued to individuals, companies and other eligible applicants.
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What is the eligibility for obtaining TRC in the UAE for an individual ?
An individual applicant, who wants to obtain UAE TRC , can fall under either of the three categories : –
- Case I – Such individual is physically present in the UAE for more than 183 days during the period for which the certificate is required to be obtained ;
- Case II – He is in UAE for 90 days or more but less than 183 days during the period for which the certificate is required to be obtained;
- Case III – He is in the UAE for less than 90 days during the period for which the certificate is required to be obtained . However, this is provided only in certain specified cases .
Under Either of the 3 cases, an individual is required to meet the conditions and criterion, specified therein . Such conditions are required to be carefully evaluated, before making the TRC application. In case the conditions are not met, the FTA can reject the application, or seek additional clarifications. The document requirement under each of these Cases also differ significantly .
What is the eligibility for obtaining TRC in the UAE for a company?
A company, which intends to obtain a TRC in the UAE, then, it needs to satisfy these criterion:
- Company must have been established for at least one year
- Also, Financial accounts are to be audited by accredited audit firm
- Further, Audited Financial report to cover the year for which the TRC is requested
It is important to note that offshore companies are not eligible to apply for these services. Additionally, the documents required for a TRC for a company are different from those required for an individual.
What is the procedure for obtaining Tax Residency Certificate in the UAE?
For obtaining a TRC in the UAE, one needs to create an account with the Federal Tax Authority’s (FTA) TRC website. Then, it has to chose the purpose for which TRC is required to be obtained (Domestic residency / Treaty purpose) and provide necessary documents and information.
New Procedure to obtain Tax Residency Certificate in the UAE – EmaraTax Portal
As per the update in second week of November 2023, to access the portal for TRC in UAE, registration to EmaraTax Portal is essential. Without registering on EmaraTax Portal, the new TRC Portal cannot be accessed.
TRC applications filed before the update can also be retrieved on the new TRC portal after filing up essential details. Additionally, the application process is now divided into 3 steps:
- Basic Information
- Request Information
- Delivery Information
All of these have to be mandatorily filed before finalization of TRC application in the UAE.
Do you need guidance and consultation on registering on EmaraTax Portal and related queries? Contact us Today.
New TRC Application Review Process – EmaraTax Portal
The FTA has now appointed 2 Levels of FTA Officers for thorough review of the UAE Tax Residency Certificate application:
- FTA Officer Level 1
- FTA Officer Level 2
Further, it is essential to ensure that the documents and information provided are in correct and proper order to avoid any delays or rejections in obtaining UAE TRC.
Documents Required for UAE TRC application
Further, common documents that may be required under alternate TRC applications (some documents may not be required in certain cases) : –
- Passport , Visa and Emirates ID
- Immigration Report
- Residency Proof
- Source of Income*
- Bank Statement
- Other documents as applicable
* Additionally, there is change in ‘Source of Income’ document requirement after the new update on EmaraTax Portal with specific documents for certain individuals.
Thus, the FTA based on the documents can approve or reject the application.
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What is the additional information required while filing UAE Tax Residence Certificate ?
The information required while filing the TRC is as follows:
- Financial Period for which the TRC is required
- If you are a Tax Resident you would need to provide Tax Registration Number
What is the format of submitting documents for submission of UAE Tax Residency Certificate Form in the UAE ?
The documents that are to be attached while filling the TRC Form in the UAE can be in the following formats :
- PDF Format
- JPEG Format
- PNG Format
What is the Fee for the UAE Tax Residency Certificate ?
Further, the Fees for Tax Residency Certificate for a natural person is as follows:
- For TRC Submission: AED 50, and
- Post approval, the additional fees payable is as under :-
-
- For Tax Registrant: AED 500 or
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- For Non-Tax Registrant: AED 1,000
If the hard copy of the certificate is required, then there are additional charges by the authorities. Though, one of the changes brought through EmaraTax Portal is that if one required multiple copies of TRC, that can be mentioned while filing the TRC application itself.
How long does it take to get the TRC in the UAE?
The usual time taken for issuance of TRC as per FTA is 3-7 business days, depending on the mode in which the certificate is required . However, this is assuming that the correct application is filed, else if rejected, the timeframe and cost to obtain TRC can increase.
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What is the period for which TRC is issued in the UAE ?
The Tax Residency Certificate (TRC) issued by the FTA is for one year .
Verification of UAE TRC – EmaraTax Portal New Process
After receiving of the UAE Tax Residency Certificate, the same can be verified on the EmaraTax Portal. Further, this ensures the authenticity of the certificate for legal purposes.
Conclusion
In conclusion, the Tax Residence Certificate (TRC) UAE helps in avoiding excessive or double taxation of income, derived by UAE resident from overseas sources. However, it is important to plan the application process so that all the requirements are met before the application is filed .
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FAQs
1. What is the benefit of obtaining TRC in the UAE ?
UAE Tax Residence Certificate (TRC) helps in getting benefit under the Double Tax Avoidance Agreement (DTAA).
2. How can I obtain TRC in the UAE and how long does it take to get the ?
After the completion of the application, the TRC can be obtained within 3-7 business days (if no hard copy is requested) or 7-10 business days (if hard copy of TRC is requested).
3. Who issues the TRC in the UAE ?
TRC is issued by the Federal Tax Authority in the UAE.
4. What is the eligibility criteria for obtaining TRC for an individual ?
The individual should have been in the UAE for 183 days or more. In some situations, TRC can also be granted if the individual is in the UAE for less than 183 days.
5. What is the eligibility criteria for obtaining TRC for a company ?
So, the company should have been operating for at least a year in the UAE to be eligible for TRC in the UAE.
6. How to obtain TRC in the UAE ?
If you want to obtain TRC in the UAE, you can contact us now at contact@sortingtax.com or +971 – 551021335 .
7. What is the validity of a UAE TRC ?
The validity of a UAE TRC is 1 year.
8. Can a TRC be issued for non-working professionals and family members ?
Yes, it can be issued.
