Tax Residency Certificate in Dubai, UAE

Understanding how taxation works in different countries is important for both individuals and businesses. Getting taxed twice on your goods and services can be a major challenge for businesses engaged in cross-border operations.

In Dubai, a Tax Residency Certificate (TRC), also known as a Tax Domicile Certificate, is a legal document issued by the Federal Tax Authority (FTA). It helps individuals and companies avoid double taxation by proving their tax residency status.

The tax residency certificate in Dubai ensures that you or your business are recognised as a tax resident of the United Arab Emirates (UAE). It proves your tax status, which is important for financial and legal matters like applying for visas, opening bank accounts, or interacting with international tax authorities.

If you are planning for a business setup in Dubai, obtaining a TRC is essential. Acquiring this certificate will ease your business taxation while providing a variety of advantages. If you are looking to avail the tax residency certificate in Dubai, UAE, read this article to learn about eligibility, documentation, process, and other key requirements.

Who is Considered a Tax Resident in the UAE?

A tax resident is an individual or a business that is officially recognised as living or working in the country for tax purposes. Dubai recognises two types of tax residents; let us have a look at them:

• Natural Persons -  There are three conditions set out by the UAE government for natural persons to qualify as tax residents.

1. A person is considered a tax resident if they spend a minimum of 183 days in the UAE within a continuous one-year span.
2. You can also be considered a tax resident if you stay in the UAE for at least 90 days for a consecutive 12-month period. For this condition, you must possess a valid ‘UAE resident permit’ or should be a citizen of UAE or a Gulf Cooperation Council (GCC) nation, having a job or business there.
3. The final scenario for a natural person to be considered as a tax resident involves having their personal and financial priorities within the UAE, with the country being the preferred primary place of residence.

• Legal/Juridical Person - A juridical person, also referred to as a legal entity or a company, can be a tax resident if it is legally formed or recognised by the state. If there is a tax treaty with another country, the treaty rules will decide the company's tax residency to prevent double taxation.

Types of Tax Residency Certificate in Dubai

The tax residency certificate in Dubai can be of different types, depending on the specific requirements of a business or an individual. Mentioned below are the two types of certificates:

1. Tax Residency Certificate for treaty tax purposes - This certificate is issued to prevent tax fraud as well as to avoid being taxed in different countries for the same income.
2. Tax Residency Certificate for domestic tax purposes - This certificate helps in verifying the taxation status of an individual or a business. It is specifically used for domestic purposes and is issued only to individuals and businesses that meet certain criteria.

Overview of the Double Taxation Agreement in UAE

The Double Taxation Agreement or the Double Taxation Avoidance Agreement (DTAA) is a treaty signed between two countries to prevent individuals or businesses from being taxed twice on the same income. It ensures that income earned in one country is only taxed once, either in the country of residence or the country where the income is generated. 

With the cushion of double taxation, taxpayers can save money and avoid complex tax situations when dealing with international income. The UAE has signed DTAAs with several countries to promote international trade and investment.

Which Countries Have Signed the DTAA with the UAE?

Here is a continent-wise summary of countries that have signed Double Taxation Avoidance Agreements with the UAE:

Continents	List of Countries
Africa	Algeria, Angola, Botswana, Cameroon, Comoro Islands, Egypt, Ethiopia, Guinea, Kenya, Mauritania, Mauritius, Morocco, Mozambique, Niger, Senegal, Seychelles, South Africa, Sudan, Tunisia, Zimbabwe
Asia	Armenia, Azerbaijan, Bangladesh, China, India, Indonesia Israel, Japan, Jordan, Kazakhstan, Kyrgyzstan, Lebanon, Malaysia, Maldives, Philippines, Saudi Arabia, Singapore, Korea Syria, Tajikistan, Thailand, Turkmenistan, Uzbekistan, Vietnam, Yemen
Europe	Andorra, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Finland, France, Georgia, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Moldova, Montenegro, Netherlands, North Macedonia, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Switzerland, United Kingdom
North America	Barbados, Belize, Bermuda, Canada, Costa Rica, Mexico, St. Vincent & the Grenadines
Oceania	Fiji
South America	Argentina, Brazil, Paraguay, Uruguay, Venezuela

Which Legal Entities Can Apply for TRC in Dubai?

Only certain business structures can avail of a tax residency certificate in Dubai. Check out the list of legal entities mentioned below:

• Public Joint Stock Company
• Private Joint Stock Company
• Private Shareholding Company
• Limited Liability Company
• Free Zone Company
• Civil Company
• Foundation

Documents Required for Dubai Tax Residency

Documentation is an essential part of availing the tax domicile certificate in Dubai. The FTA mandates individuals and businesses to submit accurate and notarised documents to prove their eligibility.

Some of the general documents required for a Tax Residency Certificate in Dubai include:  

• Tax forms
• Address proof
• Copy of Dubai Trade License
• Proof of income
• Audited financial report
• Passport and visa copies 
• Copy of rental agreement
• Memorandum of Association (MoA)
• Proof of stay, which includes entry and exit reports from the relevant authority

How to Apply for Tax Residency Certificate in Dubai?

Follow the steps mentioned below to secure this legal document seamlessly.

1. Fulfil Eligibility Criteria 

Fulfill all the pre-determined conditions before you start to apply for a tax residency certificate online.

2. Create an Account 

You must provide us with details such as name and email ID for us to create a new account on the FTA’s e-services portal, called ‘EmaraTax Portal’, and log in.

3.  Application for Tax Residency Certificate

After logging in, our business setup consultants will select the option ‘Create Tax Residency Certificate’. There, questions like whether you are a registered taxpayer in the UAE or not need to be answered. If you are already a registered taxpayer, the necessary details, such as the Tax Registration Number (TRN), need to be provided. If ‘no’, your request will directly be submitted.

4. Select Application Type

On the application page, the required documents and all necessary details must be submitted accurately.

5. Complete the Payment

Pay the requisite submission fees for the application. Post that, the application will be reviewed by the FTA. Once FTA’s approval is received, pay the final processing fees to obtain the tax residency certificate in Dubai.

How Can Commitbiz Help?

With over 17 years of experience, Commitbiz LLC has been serving as a trusted corporate service provider, offering business incorporation and allied services in the UAE and the Middle East region. Our team of experts provide tailored solutions to ensure a smooth business setup process to address your specific operational needs.

To obtain a corporate tax residency certificate in Dubai, you can partner with Commitbiz. We can guide you through the requirements and handle the entire process with precision. Contact us now to get your tax residency certificate in Dubai.