With the implementation of UAE Corporate Tax, obtaining a Tax Residency Certificate (TRC) has become an essential step for companies and individuals looking to benefit from the UAE’s vast network of Double Taxation Avoidance Agreements (DTAAs). A TRC confirms a business or individual’s tax residency status in the UAE and enables them to avoid or reduce withholding taxes in other jurisdictions.
This detailed guide explains the step-by-step process for applying for a Tax Residency Certificate in the UAE, eligibility criteria, necessary documentation, and how to leverage it for corporate tax efficiency.
What is a Tax Residency Certificate?
A Tax Residency Certificate is an official document issued by the UAE Federal Tax Authority (FTA) to verify that an individual or legal entity is a tax resident of the UAE. It is often used to claim tax treaty benefits with foreign jurisdictions and to establish non-taxability on certain incomes under foreign laws.
Under the new Corporate Tax framework, obtaining a TRC can also help businesses strengthen their residency claim and reduce exposure to foreign tax risks.
Who Can Apply for a TRC in the UAE?
Eligibility for Legal Entities:
- Must be a company incorporated in the UAE (mainland or free zone)
- Must have been operational in the UAE for at least one year
- Must have a valid trade license and physical presence in the UAE
- Maintain financial accounts audited or signed by an accredited UAE auditor
Eligibility for Individuals:
- Must have resided in the UAE for more than 183 days in the past 12 months
- Must possess a valid UAE residency visa
- Must have a tenancy contract or ownership of a UAE residential property
Documents Required to Apply for TRC
For Companies:
- Trade license copy
- Memorandum of Association (MoA)
- Tenancy contract (Ejari or lease agreement)
- Audited financial statements for the last year
- Company bank statements for 6 months
- Passport and Emirates ID of authorized signatory
- Organizational chart (in some cases)
For Individuals:
- Copy of passport and Emirates ID
- UAE residency visa
- UAE bank statements (6 months)
- Residential tenancy contract
- Income proof (employment contract or self-employment)
- Entry and exit report from the Federal Authority for Identity and Citizenship (ICP)
Application Process via FTA Portal
- Create an account or log in to the Federal Tax Authority portal.
- Go to the “Tax Residency Certificate” service under “Services.”
- Fill in all required data related to your company or personal profile.
- Upload all relevant documents in PDF format.
- Pay the applicable fee (AED 500 for individuals and AED 1,750 for companies as of latest guidance).
- Submit the application and wait for the review.
- If approved, the certificate will be issued digitally and can be downloaded from your dashboard.
Processing time usually ranges from 5 to 10 business days, depending on document completeness and FTA review backlog.
Why Tax Residency Certificate is Crucial Under Corporate Tax?
Under UAE Corporate Tax, TRC is not a mandatory requirement to determine tax residency. However, having a TRC strengthens your tax residency status and is useful when:
- Claiming relief under DTAAs with other countries
- Avoiding double taxation on foreign income
- Proving substance and presence in the UAE to global tax authorities
- Establishing economic nexus in the UAE
Let PEAK Business Consultancy Services Assist You
Applying for a TRC involves precision and familiarity with UAE compliance procedures. PEAK Business Consultancy Services specializes in helping businesses and individuals prepare all the required documentation, ensure audit compliance, and manage the entire TRC application on your behalf.
Whether you’re a small enterprise, free zone entity, or a multinational company, PEAK BCS offers tailored tax residency solutions aligned with corporate tax strategy. Contact us today for a free consultation on TRC eligibility, application, and strategic use.
Key Points to Remember
- TRCs are valid for one year and must be renewed annually.
- The FTA may reject incomplete or inconsistent applications.
- Keep your financials, tenancy agreements, and official licenses updated at all times.
- Coordinate TRC applications with corporate tax planning for maximum benefit.
Conclusion
With the UAE’s transition into a globally aligned tax jurisdiction, TRCs are no longer just tools for international tax relief—they’re strategic documents that support corporate tax compliance and planning. Businesses that wish to safeguard their tax status and minimize global tax risks should proactively obtain and manage their UAE Tax Residency Certificates.
For a smooth and compliant TRC application experience, let the experts at PEAK Business Consultancy Services guide you every step of the way.
