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

Jun 2019

The UAE has become a fast-moving 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 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 grab 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 the import and export of goods, it turns out to be troublesome. Tax is to be paid on both 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 that is issued by the UAE Federal Tax Authority (FTA) 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 of 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. In case the user will be treated as a natural person, the following documents will be required to present:

  • Emirates ID
  • Passport Copy
  • Residency Copy
  • Source of Income
  • Official Bank Statement
  • Immigration Report of Residency

if the user will be treated as a legal person, the following documents will be required to be present:

  • Trade License Copy
  • Authorized Signatory's Passport Copy
  • Authorized Signatory Emirates ID Copy
  • Audited Financial Statement
  • Official Bank Statement
  • Certified Tenancy Contract
  • Memorandum of Association or any relevant document

A 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 even 1-year of existence is enough for a company to apply for a TRC.

Steps Involved in Registering a TRC

Below are the steps which need to be followed to apply for a TRC:

1. Create an account or sign up

in order to create a new account, the user should create a new account in the FTA portal and fill in the required details.

2. Login 

The user should log into the portal to register for a TRC.

3. Click on "Create Tax Recidency Certificate"

After clicking on "Create Tax Recidency Certificate" the user needs to confirm if they are already a registered Tax Payer. then the users should provide the TRN Number and the Registered Email id.

4. Submit documents

The user must submit the required documents. it should be kept in mind the user will be treated as a legal person or a natural person.

5. Payment

Make the required payment for the TRC

6. Certificate

the customer will receive the certificate via mail after the payment is done by the user. 

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.