All You Need to Know About UAE Tax Residency Certificate

Living in the United Arab Emirates (UAE) means you must understand tax residency rules. All UAE residents and expatriates need to obtain a Tax Residency Certificate (TRC). This certificate proves where you live for tax purposes.  

Having a valid UAE TRC is key for:

• Avoiding double taxation
• Opening bank accounts 
• Getting subsidies and discounts
• Sponsoring visas
• Registering a company

This article explains everything you need in simple terms about getting a TRC in the UAE.

Who Needs a UAE Tax Residency Certificate?

Anyone living and earning income in the UAE should have a valid TRC. This includes:

• UAE citizens – Local Emiratis residing in the UAE show their TRC abroad to prevent paying taxes overseas.
• Expat residents – Expats must have a UAE TRC whether their income comes from within the country or from external sources. 
• Companies/establishments – Any organizations registered in the UAE need to supply TRCs when required as well.

So both individuals and enterprises based in the UAE commonly require TRCs.

How to Apply for a UAE Tax Residency Certificate

Getting a TRC in the UAE is simple:

Eligibility Criteria  

First, you must meet a few key conditions for obtaining a UAE TRC:

• Valid UAE residence visa  
• Living in the UAE for over 6 months each calendar year
• Earning some taxable income in the UAE

Documents Needed

Next, you need to prepare the right documents, including:

• Passport copy
• UAE residence visa page   
• Emirates ID copy  
• Proof of UAE address (tenancy contract, DEWA/SALIK bill etc.)
• Local bank account statement showing salary credits

Step-by-Step Application Process

Applying for a TRC can be done directly through the government portal or by appointing a tax agent to handle it for you. Here are the detailed steps:

    Access the TRC Application Form

• Go to www.tax.gov.ae
• Register for an account if new user
• Log in and select Apply for Certificate of Residency

    Fill in the Details

• Enter your personal information like full name, EID, visa, etc.
• Provide contact info and upload digital copies of supporting documents
• Double check form carefully before submission

    Pay the Fees

• Payment of AED 100 application fees per person
• Pay online directly through debit/credit card or eDirham
• Ensure successful payment receipt generated

    Wait for Processing

• Application is received and verified by Federal Tax Authority
• Typical processing time is 3-5 working days
• Can track application status on online account

    Receive Digital Copy

• Approved TRC is emailed directly to the applicant
• Digital copy is valid and adequate for most requirements
• Printed copy can also be requested separately

Hiring a tax consultant can expedite successful applications.

Validity of UAE Tax Residency Certificate 

The TRC confirms your tax residence in the UAE for one full calendar year when issued. It must be renewed each year to remain valid.

Key Benefits of Having a UAE Tax Residency Certificate

There are five major advantages to keeping an updated TRC in the UAE:

• Avoids Double Taxation – With a TRC, any taxes paid in UAE exempts you from paying tax again on the same income overseas. This eliminates double taxation.
• Company Registration – A valid TRC is mandatory for registering a mainland or free zone company in the UAE to prove residence status.  
• Bank Account Opening – Local banks need applicants to provide a TRC before opening certain accounts for UAE residents to allow salary transfers and remittances.
• Discounts & Subsidies – A TRC can make you eligible for special UAE discounts/subsidies on tuition fees, healthcare, municipal services etc.
• Visa Sponsorship – A TRC may be essential for sponsoring residence visas for family or when applying for UAE citizenship.

Renewing a UAE Tax Residency Certificate  

To keep the TRC valid every year:

• TRCs expire on December 31 and must be renewed each following year
• Submit a renewal application with updated documents  
• Pay fees of AED 100 per certificate annually
• Takes 3-5 days to process online 

Having an up-to-date TRC is vital for ongoing tax residence and benefits in the UAE.

Conclusion

A UAE Tax Residency Certificate confirms your physical presence in the country for tax purposes. It is mandatory for all UAE residents and expatriates to avoid double taxation. With a simple online application, fast processing, and annual renewal, make sure to get your TRC.

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