Tax Residency Certificate
In the UAE, a Tax Residency Certificate is one of the official documents issued by the Ministry of Finance. The UAE has signed tax treaties with over 55 countries to avoid double taxation. A certificate of tax residency confirms that an individual or company is resident in a specific country. Foreign investors and companies from other taxable jurisdictions, including Pakistan, can use this certificate to avoid paying tax twice on the same income. It is issued to companies already registered in the UAE or to individuals who hold a valid UAE residency visa.
An individual who has lived in the UAE for more than 180 days is eligible to receive a Tax Residency Certificate. Companies in the UAE can fully benefit from the advantages of double taxation treaties, as the UAE has signed agreements with dozens of countries globally—including Pakistan. These treaties are bilateral agreements to protect the financial interests of foreign investors and entrepreneurs.
interests of foreign investors and entrepreneurs. Offshore companies are not listed under the UAE’s tax treaties and therefore cannot receive a Tax Residency Certificate. Instead, offshore companies can apply for Tax Exemption Certificates which confirm that the company is exempt from UAE tax, but not eligible for treaty benefits. There are defined procedures for applying for a Tax Residency Certificate in the UAE. Once all documents are submitted with the application, the certificate is usually issued within two months. The applying company must have been operational in the UAE for at least three years before applying for the TRC.