Overview
Applying for a Tax Residency Certificate (TRC) for Non-DTA Purposes requires specific documentation based on the applicant’s category. The Federal Tax Authority (FTA) has outlined distinct requirements for natural persons and juridical persons (companies and legal entities) to establish their tax residency in the UAE. The documentation varies depending on the applicant’s physical presence, financial ties, and business operations. For individuals, the requirements depend on the duration of their stay in the UAE and the nature of their economic activities. Companies must demonstrate effective management and operational control within the UAE. Compliance with these documentation requirements ensures a smooth application process and timely issuance of the TRC.
To understand the general process and eligibility, read our Tax Residency Certificate UAE overview.
Required Documentation
To apply for a Tax Residency Certificate for reasons other than claiming benefits under a Double Taxation Agreement (DTA), applicants must submit specific documents based on their category. The documentation requirements vary for natural persons and juridical persons as detailed below.
- Natural Persons
The required documents depend on the individual’s physical presence in the UAE and their financial and residential ties.
A. Individuals who have resided in the UAE for 183 days or more within a 12-month period
- Identity proof: Either an Emirates ID and valid UAE residence visa or a copy of the passport along with an entry and exit report issued by the Federal Authority of Identity and Citizenship (ICP) or any relevant government entity.
B. Individuals who have resided in the UAE for 90 to 182 days within a 12-month period
- Identity proof: Any one of the following:
- Emirates ID and valid UAE residence visa
- Passport copy along with an entry and exit report from the ICP or another competent authority.
- Additional proof (choose one):
- Evidence of employment or business activity: Salary certificate, proof of income, or documentation of business operations in the UAE.
- Proof of permanent residence: Certified tenancy agreement, long-term rental contract, a signed statement from the property owner or landlord, or a title deed accompanied by a utility bill (electricity, water, or gas) in the applicant’s name.
C. Individuals who maintain their primary residence and center of financial and personal interests in the UAE
- Identity proof: Either an Emirates ID and valid UAE residence visa or a passport copy with an entry and exit report from the ICP or another government body.
- Financial and personal ties: A written declaration explaining how the applicant’s financial and personal interests are primarily in the UAE, along with supporting documents.
- Proof of residence: Certified tenancy agreement, long-term rental contract, a signed statement from the landlord or property owner, or a title deed accompanied by a utility bill in the applicant’s name.
- Proof of income (if applicable): Salary certificate, share certificates, trade license, savings records, or UAE-based bank statements.
2. Juridical Persons (Companies and Legal Entities)
Companies and other juridical entities must provide the following documents:
- Business license (e.g., trade license) and lease agreement.
- UAE Corporate Tax TRN (if available).
- Certificate of incorporation.
- Certified copy of the Memorandum of Association.
- Details of the authorized signatory, including their name, Emirates ID, and passport copy, along with proof of authorization (e.g., Establishment Contract or Power of Attorney).
- Proof of effective management and control in the UAE (if applicable), which includes a written statement justifying how the company is effectively managed and controlled from within the UAE, accompanied by supporting evidence.
Companies seeking clarity can explore the TRC UAE guide for legal persons for a detailed documentation checklist.
Required Documentation for a Tax Residency Certificate (TRC) for Double Taxation Agreement (DTA) Purposes
Applicants seeking a Tax Residency Certificate to benefit from a Double Taxation Agreement (DTA) must submit the following documents based on their category.
1. Natural Persons
Individuals applying for a TRC for DTA purposes must provide:
- Identity proof (any one of the following):
- Emirates ID and UAE residence visa.
- Passport copy along with an entry and exit report issued by the Federal Authority of Identity and Citizenship (ICP) or a relevant government entity.
- Proof of residence (if applicable).
- Proof of income: Salary certificate or other documentation confirming the source of income.
- If the specific DTA requirements state that residency in the UAE must be demonstrated, applicants should also submit the documents listed under the Tax Residency Certificate for Non-DTA Purposes (refer to the previous section).
2. Juridical Persons (Companies and Legal Entities)
Companies applying for a TRC must submit the following documents:
- Business license (e.g., trade license) and lease agreement.
- UAE Corporate Tax TRN (if available).
- Certificate of incorporation.
- Certified copy of the Memorandum of Association.
- Details of the authorized signatory, including their name, Emirates ID, and passport copy, along with proof of authorization (Establishment Contract or Power of Attorney).
- Proof of effective management and control in the UAE (if applicable): A written statement explaining how the entity is effectively managed and controlled from within the UAE, supported by relevant documentation.
FTA Application Review Process
Upon submission, the Federal Tax Authority (FTA) will review the application and, if approved, issue the Tax Residency Certificate, which the applicant can download. If needed, applicants can request a hard copy for an additional fee.
Processing Timeline & Responses
- The FTA typically responds within 10 business days from the date of a complete application submission.
- The response may be:
- Approval (certificate issued).
- Rejection (application declined).
- Request for additional information (applicant has 30 business days to respond, with an option to request an extension).
- If a hard copy certificate is requested, the FTA will process it within 5 business days from the date of payment. Hard copies are only delivered to UAE addresses.
Certificate Validity & Withdrawal
- The TRC is valid only for the period selected by the applicant.
- The FTA retains the right to withdraw the certificate if incorrect information is discovered or if there is a change in circumstances that affects the applicant’s tax residency status.
Fees for Tax Residency Certificate Application
The issuance of a Tax Residency Certificate is subject to fees as outlined in Cabinet Decision No. 65 of 2020. A non-refundable submission fee of AED 50 is required to apply for the certificate.
Once the application is approved, the following processing fees apply:
- AED 500 for the review and issuance of an electronic TRC to a Tax Registrant (an entity with a Corporate Tax TRN).
- AED 1,000 for the review and issuance of an electronic TRC to a natural person who is not registered for Corporate Tax.
- AED 1,750 for the review and issuance of an electronic TRC to a juridical person (company or legal entity) that is not registered for Corporate Tax.
Additionally, if an applicant requests a hard copy of the certificate, an extra fee of AED 250 per request will be charged.
Conclusion
Securing a Tax Residency Certificate (TRC) for DTA & Non-DTA Purposes is a crucial step for individuals and businesses in the UAE seeking to establish tax residency for regulatory or financial purposes. The application process is governed by stringent documentation requirements, ensuring only eligible applicants receive the certification. Given the importance of accuracy in submissions, applicants must provide comprehensive and valid supporting documents to avoid delays or rejections. Understanding the procedural timelines and potential responses from the FTA is essential for a seamless process.
Why BCL Globiz?
BCL Globiz offers expert guidance and support in navigating the Tax Residency Certificate (TRC) application process in the UAE. Our team ensures that all documentation is accurately prepared and submitted in compliance with FTA regulations, reducing the risk of delays or rejections. With our deep understanding of UAE tax laws and regulatory requirements, we assist both individuals and businesses in obtaining their TRC efficiently. Whether you require assistance in documentation, application review, or liaising with the FTA, BCL Globiz provides end-to-end solutions to simplify the process and ensure successful certification.
For a broader perspective on application steps and eligibility, refer to our complete TRC UAE application guide.
For more details contact our expert at rakesh@bclglobiz.com and visit www.bcl.ae today.
