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Tax Residency Certificate (TRC) in the UAE

Ensuring Compliance & Avoiding Penalties

What is a Tax Residency Certificate (TRC)?

A Tax Residency Certificate (TRC), also known as a Tax Domicile Certificate, is an official document issued by the Federal Tax Authority (FTA) confirming that an individual or corporate entity is a tax resident in the UAE. The TRC is primarily used to:
  • Claim benefits under Double Taxation Avoidance Agreements (DTAA) between the UAE and other countries.
  • Prevent tax evasion and provide proof of tax residency for international tax compliance.
To qualify for a Tax Residency Certificate:
  • Individuals must have resided in the UAE for at least 183 days.
  • Companies must have been established in the UAE for at least one year.
The TRC is valid for one year and is issued for a specific country at a time. Businesses or individuals can apply for multiple certificates if required.

Benefits/Importance of Tax Agency Services

Tax Residency Certificate (TRC) for Companies (Terms and Conditions):

  • The company must be incorporated in the UAE and have been operational for at least one year.
  • Foreign company branches and offshore firms are not eligible for a TRC as they are not considered UAE-established entities.
  • The TRC does not cover future periods from the selected start date of the financial year. This applies to both treaty purposes (international use) and domestic purposes (within the UAE).
  • Companies must be registered for VAT to obtain a Commercial Activity Certificate, which is required for TRC applications.

Tax Residency Certificate (TRC) for Individuals (Terms and Conditions):

  • Individuals applying for a TRC for treaty purposes (outside the UAE) must have spent at least 183 days in the UAE during the relevant year.
  • For domestic purposes (within the UAE), individuals may apply if they fall into any of the following categories:
  • Residing in the UAE for more than 183 days.
  • Residing in the UAE for 90–183 days.
  • Residing in the UAE for less than 90 days (in certain cases).
  • The TRC does not cover a future period, whether for treaty purposes (international use) or domestic purposes (within the UAE).

How Spectrum Can Assist You with Tax Residency Certificate (TRC)

  • At Spectrum Auditing, we assist businesses and individuals in obtaining their Tax Residency Certificate (TRC) in compliance with FTA regulations.
  • We assist in:
End-to-End Application Support – Ensuring a smooth and hassle-free process for TRC issuance.
Document Preparation & Compliance Check – Verifying and compiling all necessary documents.
Eligibility Assessment – Ensuring that individuals and businesses meet the residency criteria.
Liaison with Authorities – Handling communications with the Federal Tax Authority (FTA) for approvals.
Assistance with VAT Registration (if required) – For companies needing VAT registration to qualify for TRC.

FAQs

What is the Tax Residency Certificate validity period?
TRC is valid for one year from the beginning of the financial year selected by the applicant.
  1. The Tax Residency Certificate will be sent in digital format after the payment is processed to the registered email if a printed certificate is not requested.
  2. if the applicant requested a printed certificate specify the number of copies and it will be delivered by the courier (Emirates Post) each for an additional fee (AED 250). The applicant will also receive a digital copy of the certificate.
  3. Delivery is available for local addresses in the UAE only.
Through the Federal Authority for Identity, Citizenship, customs & Port Security Application (UAEICP).
What should be considered when applying for the Tax Residency Certificate?
  1. The requested period (financial year) for the Tax Residency Certificate should be after the establishment date of the company.
  2. It is important to ensure that the selected year has already passed.
A recently established company should have completed one year of operation before being eligible to apply for the Tax Residency Certificate.

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