Tax Residency Certificate In UAE

In the UAE, a Tax Residency Certificate (TRC) is an official document issued by the Ministry of Finance. The UAE has signed Double Taxation Avoidance Agreements (DTAA) with 55 countries, including India, to prevent double taxation. A TRC certifies that an individual or a company is considered a tax resident of the UAE. This allows foreign investors and Indian companies operating in the UAE to benefit from the provisions of these treaties and avoid double taxation. The certificate is issued to companies already registered in the UAE or to individuals holding a valid UAE residency visa.

An individual who has resided in the UAE for more than 180 days is eligible to obtain a tax residency certificate. Indian companies registered in the UAE can fully leverage the advantages of DTAAs, as the UAE has bilateral agreements with numerous countries worldwide to protect foreign investors. Offshore companies, however, are not included under UAE tax treaties and therefore cannot obtain a TRC. Instead, offshore entities may apply for tax exemption certificates, as UAE regulations allow only companies listed under applicable treaties to benefit from tax residency.

The application process for a Tax Residency Certificate in the UAE involves submitting all required documentation. Once submitted, the certificate is typically issued within two months. Additionally, the company must have been established and operational in the UAE for a minimum of three years before it becomes eligible to apply for a TRC.