All You Need to Know About the Tax Residence Certificate in UAE
21

Jun 2019

The UAE has become a fastmoving city. Be it a business or job; the Emirates have a space for all. When it comes to business setup, UAE is the most favourable option by the investors. The city has established itself as a booming business hub, backed by the continuous support of the Government. New laws get implemented rapidly to ease the process of business setup.

The free zones available in the UAE serves to be one of the favourable factors that grabs the attention of international investors. Setting up companies in the free zones helps a business entity to obtain a Tax Residency Certificate. The VAT got implementation on 1stJan 2018, which forced the business entities to pay taxes. Now, when it comes to companies dealing with import and export of goods, it turns out to be troublesome. Tax is to be paid on both the sides, i.e. while importing as well as exporting. To reduce this burden, TRC came into existence.

What Is TRC?

Tax Residency Certificate or Tax Domicile Certificate is a document that helps a company to utilize the benefits and prevents them from paying double taxation during the import and export process of goods. It is mainly obtained with an aim to avoid taxes on the income signed by the UAE.

Tax Residency Certificate in the UAE

TRC is an official bi-lateral document which is issued by the UAE Ministry of Finance to the companies registered in the UAE and is validated for a period of 1 year. The UAE has signed treaties with more than 55 countries to avoid double taxation. When it comes to offshore companies, they can obtain a tax exemption certificate. Now, to avail a Tax Residency (Domicile) Certificate, certain essential documents are required. Let’s have a look at them.

Documents Required to Apply for TRC

Once you present the documents mentioned below, the TRC process gets initiated.

  • Trade License Copy
  • Certified Articles of Establishment
  • Memorandum and Articles of Association
  • A valid passport and Visa Copies
  • Emirates ID Copy
  • Six-months UAE Bank Statement
  • Valid income proof in the UAE
  • Immigration Report
  • Tenancy Agreement
  • Application Fees of AED 2000 + AED 3000 through the E-Dirham Card

The time-span of 4-5 working days is required for pre-approval processing. When it comes to the issuance, it takes 5-7 working days after approval.

It is to be noted that a minimum of 3yrs existence is required for a company to apply for a TRC.

Steps Involved in Registering a TRC

Tax Residence Certificate

 

To deal with the tax processes, tax experts in the UAE can help and guide you. Experts at JAXA will help you with everything you require. Our team consists of professionals who are well-versed with the legal requirements and can provide you with tax solutions and help you to get a TRC. The process gets completed in a comfortable and smooth way. To have a word, do contact us-we’d be glad to assist.