In today’s interconnected business world, tax efficiency is a priority for both individuals and companies. One of the key tools available in the UAE to avoid double taxation and access treaty benefits is the Tax Residency Certificate. While many are familiar with the standard TRC, fewer understand the Special Form TRC and when it is required.

What is a Tax Residency Certificate?

A TRC is an official document issued by the FTA confirming that an individual or legal entity is a tax resident of the UAE. It enables the holder to benefit from the provisions of Double Taxation Avoidance Agreements (DTAAs) between the UAE and other countries.

What is the Special Form TRC?

The Special Form TRC is a tailored version of the certificate, often requested by foreign tax authorities when they require additional information or specific formatting not covered by the standard TRC issued by the FTA.

For example:

• Certain countries may have their own prescribed TRC format that must be filled and endorsed by the FTA.
• Foreign authorities may require additional details such as tax identification numbers, local income details, or residency confirmation for specific treaty articles.

When is the Special Form TRC Required?

You may need a Special Form TRC in the following cases:

1. Foreign Tax Office Request – If the tax authority in another country specifically provides a TRC form to be completed by the UAE.
2. Treaty Article-Specific Claims – When claiming benefits under a certain article of a DTAA
3. Customized Information – When the standard TRC does not meet the information requirements of the foreign jurisdiction.

Process for Obtaining a Special Form TRC in the UAE

Prepare the Required Documents for companies

• Valid Trade license
• Ejari copy
• Moa
• Completed special TRC form provided by the foreign tax authority.
• Audited financial statements (Optional)
• Bank statement at least 6 months for the required year (Optional)
• Completed special TRC form provided by the foreign tax authority.

Prepare the Required Documents for individuals.

• Valid Emirates ID and passport copy of the applicant
• Entry and exit for the required year
• Ejari copy
• Source of income (salary certificate or Trade license)
• Bank statement for at least 6 months for the required year
• Completed special TRC form provided by the foreign tax authority.

Submitted to the FTA:

• Apply online through the FTA portal.
• Upload the completed special form along with required documents.
• Pay the applicable service fee.

How the Special form can be attested by FTA?

• For the electronic special form, it can be attached alongside the application in Tax Residency Certificate portal.
  It will be returned through the application with the required signature.
• For the hard-copy special form, the applicant bears the responsibility to courier the special form to FTA and collect it once it’s attested. 
  (The applicant will bear fees for sending and returning the documents).
• The special form must be filled out by the applicant before handing it to FTA.

What are the cases that may prevent the completion of attesting the tax form?

• The certificate was not issued for any reason. For example, the electronic application was rejected, the issuance of the certificate was not paid in the electronic system.
• The applicant section (in the form) has not been filled out.
• The applicant did not sign the form.
• If the year mentioned in the tax form does not match the year selected in the related Tax Residency Certificate application.
• If the country mentioned in the tax form does not match with the country mentioned in the Tax Residency Certificate application.The special form has to be couriered to FTA after issuing the related Tax Residency Certificate application. (if ink signature is required)

FTA Review and Endorsement:

• The FTA will review and, if satisfied, endorse or issue the special form TRC.

 Benefits of Obtaining a Special Form TRC

• Smooth Foreign Tax Relief: Helps avoid delays in claiming treaty benefits abroad.
• Compliance: Ensures you meet the exact documentation requirements of the foreign tax office.
• Maximizing Savings: Enables reduced or zero tax rates under applicable DTAs.

Key Tips

• Always check with the foreign tax authority before applying to confirm the exact form and requirements.
• Apply well in advance to avoid missing tax filing deadlines abroad.
• Ensure consistency between the special TRC form and your UAE records.

Conclusion

The Special Form TRC is a valuable tool for UAE residents and companies doing cross-border business. By ensuring the correct format and endorsements are in place, you can fully benefit from the UAE’s extensive DTAA network while remaining compliant with both local and foreign tax laws.