In the UAE, a Tax Residency Certificate is one of the official documents issued by the Ministry of Finance. UAE has signed tax treaties with 55 countries to avoid double taxation. A certificate of tax residency that certifies that an individual or company is resident in a specific country. Foreign investors and companies from other taxable jurisdictions will be able to avoid double taxation. It is issued to companies which have already registered in the UAE or to individuals who have received a residency visa.
An individual who has lived in the UAE for more than 180 days is eligible to receive a tax residency certificate. Companies in the UAE can make full use of the advantages of double taxation due to the fact that the UAE has signed double tax treaties with dozens of countries around the globe. It’s a bilateral agreement to protect the interests of foreign investors and companies from other taxable jurisdictions. Because offshore companies are not listed with the tax treaties in UAE, they cannot receive the tax residency certificate. Tax exemption certificates can be obtained instead of tax residency certificates by offshore companies. In the UAE, it only allows companies to be tax exempt.
There are some procedures for applying for a tax residency certificate in the UAE. Once the necessary documents are submitted with the application, the certificate will usually be obtained within two months. The company must have been in the UAE for a minimum of three years before applying for the TRC.
Documents required for companies
All company documents,
Request letter from the company,
Shareholder passport copy, visa page , ID copy,
Audited financial statements,
6 months bank statements,
Tenancy contact copy and EJARI,
Government fees will be approximately AED: 5,000.00
Documents required for individuals
Passport copy and visa page, Emirates ID,
Tenancy contact and EJARI,
Source of income / Salary certificate,
6 months bank statements,
Immigration report state that, the person is stayed in Dubai number of days in UAE,
Government fees will be approximately AED: 2,000.00
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