Tax Residence Certificate (TRC) in UAE - Your Passport to avoid Double Taxation
CA Arinjay Jain
Founder @ Sorting Tax .com | International Tax, M&A Tax, Income Tax
UAE Tax Residence Certificate (TRC) , is issued by the UAE Federal Tax Authority . UAE TRC is issued to either an individual, a UAE company , or other eligible entities, who need to provide these certificates for lower deduction of tax in foreign jurisdiction, or establish financial emigration, from certain countries, like South Africa. A UAE TRC is issued to an eligible person , after submission, and verification of documents , which establish, proof of income in the UAE (or being a dependent on a UAE relative), proof of residence which could be an Ejari or title to a property in UAE , existing business in the UAE etc.
A UAE tax residency certificate is an evidence that ?an individual or company is a tax resident of UAE. Specific Treaty based UAE TRC are also issued that can also enable a person to claim benefit under the Double Tax Avoidance Agreement (DTAA) entered into by UAE with other countries.
What is the Process to obtain UAE Tax Residence Certificate (TRC)
Applicant has to make an application to obtain UAE TRC from UAE Federal Tax Authority on the Emara Tax portal by providing prescribed documents and payment of applicable fees, that may vary for UAE tax registrant / non tax registrants.? ?
What is the eligibility for obtaining TRC in the UAE for an individual ??
An individual applicant, who wants to obtain UAE TRC , can fall under either of the three categories : –?
Under all 3 cases, an individual is required to meet different applicable conditions and criterion, else, the UAE TRC would not be approved by the FTA . If the documentation is inadequate, the FTA can also seek additional clarifications/ documents.? ?
What is the eligibility for obtaining TRC in the UAE for a company??
A company (other than offshore companies), which intends to? obtain a TRC in the UAE needs to satisfy the following criterion:?
The documents required for obtaining TRC by a company are different from those required for an individual.?
What is the procedure for obtaining Tax Residency Certificate in the UAE??
For obtaining a TRC in the UAE, one needs to create an account with the Federal Tax Authority’s (FTA) TRC website. Then, it has to chose the purpose for which TRC is required to be obtained (Domestic residency / Treaty purpose) and provide necessary documents and information. ?
New Procedure to obtain Tax Residency Certificate in the UAE – EmaraTax Portal
To obtain TRC in UAE, the applicant has to register on the EmaraTax Portal
The application process is now divided into 3 steps:
All of these have to be mandatorily filled before finalisation of TRC application in?the UAE.
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New TRC Application Review Process – EmaraTax Portal
The FTA has now appointed 2 Levels of FTA Officers for thorough review of the UAE Tax Residency Certificate application : -
Further, it is essential to ensure that the documents and information provided are in correct and proper order to avoid any delays or rejections in obtaining UAE TRC.
Documents Required for UAE TRC application
Further, certain general documents that may be required under TRC applications are as under. However, these may differ depending on case to case basis : – ?
Based on review of these documents, FTA can approve or reject the application.?
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What is the additional information required while filing UAE Tax Residence Certificate ??
The information required while filing the TRC is as follows :? -
What is the format of submitting documents for submission of UAE Tax Residency Certificate Form in the UAE ??
The documents that are to be attached while filling the TRC Form in the UAE can be in the following formats ?:??
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What is the Fee for the UAE Tax Residency Certificate ???
Further, the Fees for Tax Residency Certificate for a natural person is as follows:?
If the hard copy of the certificate is required, then there are additional charges by the authorities.
How long does it take to get the TRC in the UAE??
The usual time taken for issuance of TRC as per FTA ?is 3-7 business days, where the application is filed with all required documents and information.
What is the period for which ?TRC ?is issued in the UAE ??
The Tax Residency Certificate (TRC) issued by the FTA is for one year . ??
Verification of UAE TRC – EmaraTax Portal New Process
After receiving of the UAE Tax Residency Certificate, the same can be verified on the EmaraTax Portal.
Conclusion?
In conclusion, the Tax Residence Certificate?(TRC) UAE helps in avoiding excessive or double taxation of income, derived by UAE resident from overseas sources. However, it is important to plan the application process so that all the requirements are met before the application is filed . ??
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FAQs
?1. What is the benefit of obtaining TRC in the UAE? ?
UAE Tax Residence Certificate (TRC) helps in getting benefit under the Double Tax Avoidance Agreement (DTAA). For example certain capital gains in India are not liable for tax, in the hands of UAE Tax resident
2. How can I obtain TRC in the UAE and how long does it take to get the? ?
After the completion of the application, the TRC can be obtained within 3-7 business days (if no hard copy is requested)
3. Who issues the TRC in the UAE ?
TRC is issued by the Federal Tax Authority in the UAE.
4. What is the eligibility criteria for obtaining TRC for an individual ?
The individual should have been in the UAE for 183 days or more. In some situations, TRC can also be granted if the individual is in the UAE for less than 183 days.
5. What is the eligibility criteria for obtaining TRC for a company ?
The company should have been operating for at least a year in the UAE to be eligible for TRC in the UAE.
6. How to obtain TRC in the UAE ?
If you want to obtain TRC in the UAE, you can contact us at [email protected] or +971 – 551021335?.
7. Can a TRC be issued for non-working professionals and family members ?
Yes, it can be issued.
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3 个月I want an individual TRC, which one we select, from below ?TRC For Domestic Tax Purposes, TRC for Traty Tax Person