UAE Tax Residency Certificate (TRC) for Taxable Natural person and Juridical Person

Secure your Tax Residency Certificate (TRC) in the UAE for both individuals and businesses. Navigate the process effortlessly for taxable natural persons and juridical entities, ensuring compliance and ease in establishing your tax residency status in the UAE.

Cabinet Decision No. 85 of 2022 – Issued 2 Sept 2022 (Effective 1 Mar 2023)

Ministerial Decision No. 247 of 2023 – Issued 16 October 2023 – (Effective from 1 March 2023)

UAE Tax Residency certificate (TRC) will be issued to a Natural Person and a Juridical Person.

TRC refers to “A certificate issued by the Authority proving the Person’s status as a Tax Resident in the State.”

When a Natural Person (NP) considered as Tax Residency in UAE:

NP considered as Tax Residency in UAE if any following conditions are met:
(i) If his usual or primary residence in UAE
(ii) If he has been physically present in the State for a period of (183) one hundred and eighty-three days or more during the applicable (12) twelve consecutive months

(iii) UAE national, physically present in the State for (90) ninety days or more within the relevant (12) twelve consecutive months, is a, holds a valid Residence Permit in the State, or is a national of any member state of the Gulf Cooperation Council, and meets any of the following criteria: a. He has a permanent address in the state. b. He has a job or a business in the state.

When Juridical Person (JP) considered as Tax Residency in UAE:

NP considered as Tax Residency in UAE if any following condition met:
(i) It was incorporated, formed, or recognized in accordance with the legislation in force in the State, excluding the branch registered in the State by a foreign juridical person.

(ii) It is considered a Tax Resident under the Tax Law in effect in the State.

What are Steps of receiving TRC in UAE:

•       Natural Person (NP) Tax Residency in UAE and / Juridical Person (JP) Tax Residency in UAE may “apply in proper format with supporting documents to the Authority to obtain a Tax Residency Certificate “
•      Application must be submitted in the way and format determined by the Authority and must contain all the data required for the Authority to grant the Tax Residency Certificate.
• The Authority may approve the application and issue a Tax Residency Certificate in the form attached to this Decision or in any other form that the Authority deems acceptable if it is satisfied that the applicant satisfies the requirements of tax residency in the State in accordance with the terms of the applicable International Agreement.

Attachment to Ministerial Decision No. (247) of 2023 on the Issuance of Tax Residency Certificate for the Purposes of International Agreements

1. Application Number
2. Application Date
3. Name of Applicant
4. Nationality (if applicable)
5. Passport Number
6. Resident Visa Number(s)
7. Emirates ID number (if applicable)
8. Commercial license number and licensing authority (if applicable)
9. Tax Registration number for Corporate Tax purposes (if applicable)

The Federal Tax Authority to the best of its knowledge certifies that [name of applicant] is a resident of the United Arab Emirates pursuant to the provisions of [full name of the double taxation agreement] entered into between the United Arab Emirates and [name of the other country] on [signature date of agreement].

Resources and Sources

https://mof.gov.ae/wp-content/uploads/2023/10/Ministerial-Decision-No247-of-2023-on-the-Issuance-of-Tax-Residency-Certificate-for-the-Purposes-of-International-Agreements.pdf

https://tax.gov.ae/Datafolder/Files/Legislation/Corporate%20Tax/Cabinet%20Decision%2085%20of%202022%20-%20For%20publishing.pdf

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