Residency certificate: Application, cost, and more.

Those who are in the UAE for 183 days or more are?tax?residents, as part of the new Ministry of Finance guidelines released on March 1.

According to the guidelines, an individual’s usual place of residence will be considered in the UAE if they normally or habitually reside there, and their ‘centre of financial and personal interests’ is in the UAE due to their work, personal, economic relationships, or other connections.

It is not necessary for an individual to own their permanent place of residence, but such a place must be continuously available to them.

Residents can now obtain their?Tax Residency Certificates (TRCs)?via the Federal Tax Authority (FTA) website and benefit from Double Tax Avoidance Agreements (DTAA) signed by the UAE.

Submitting an application takes about 45 minutes, with:

• 3 business days from the date the completed application was received
• In case the applicant requested hard copy of the certificate: 7 business days from the date the certificate fees payment is completed
• In case the applicant has a tax form requires FTA attestation: 5 working days from the date the completed form is received

However, applicants must first register themselves on the?TRC platform. The service is available 24 hours a day, 7 days a week.

Documents required

According to the FTA website, the documents required vary for persons depending on three categories.

They are – if the applicant is a natural person, if the applicant is a legal person, of it the applicant is a legal person of a government entity.

Where the applicant is a natural person:

• Passport.
• Valid Residence Permit.
• Emirates ID.
• A certified copy of residential lease agreement.
• Source of income/salary certificate.
• A bank statement issued by a local bank covering 6 months within the financial year related to the request.
• Entry and exit report from Federal Authority of Identity and Citizenship or a local competent Government entity.

Where the applicant is a legal person:

• Trade License.
• Proof of Authorization (Establishment Contract or the Power of Attorney).
• Copy of the audited financial accounts certified by a certified audit firm.
• A bank statement issued by a local bank covering 6 months within the financial year related to the request.
• Certified copy of the Memorandum of Association (if applicable).

Where the applicant is a legal person – Government entity:

• A copy of the Decree or the Certificate of Incorporation.
• Request letter issued by the person (the Government entity).

How to apply for UAE tax residency certificate

According to the FTA website, these are procedures to apply for a TRC:

1. Sign-up for a Tax Certificate account by clicking?here.
2. Access the Tax Certificate account dashboard.
3. Click on “Create Tax Residency Certificate”.
4. Complete the creation process.
5. Pay certificate fees after getting FTA’s approval
6. If there is Tax form requires FTA’s attestation: send the form by mail with return service (the applicant will bear fees for sending and returning the documents). The form should be filled and covers the financial year of the certificate.

Cost

It will cost AED50 for submission, AED500 for all tax registrants, AED1,000 for non-tax registrant natural persons, AED1,750 for non-tax registrant legal persons, the FTA website reads.

Younis Haji Al Khouri, the Under-Secretary of the Ministry of Finance, stated that this Ministerial Decision provides additional clarity to individuals regarding when they are considered tax residents under UAE taxation laws.

“The Ministerial Decision on implementing domestic tax residency rules is important as it gives additional clarity to individuals in respect of when they are considered as ‘tax residents’ under UAE taxation laws” Younis Haji Al Khouri, Under-Secretary of the Ministry of Finance said.

The latest decision clarifies certain rules outlined in Cabinet Decision No. 85 of 2022 on the determination of tax residency for natural and legal persons, which was issued in September of last year.

Source: New UAE tax: How to apply for residency certificate, cost, all you need to know - Arabian Business