Tax residency certificate: what it means in UAE tax.
The meaning of tax residency certificate under UAE tax law: how it works, a worked example in AED, common mistakes and the legal references.
A tax residency certificate is the FTA document proving a company or individual is UAE tax resident, used mainly to claim double tax treaty benefits.
What tax residency certificate means
Also called: TRC, Tax residence certificate.
A tax residency certificate is a certificate issued by the Federal Tax Authority confirming that a person is a tax resident of the UAE. The legal basis is Cabinet Decision No. 85 of 2022 on the Determination of Tax Residency, which defines the certificate and lets a UAE tax resident apply for one.
A company or other legal person is a UAE tax resident if it was incorporated, formed or recognised under UAE law, or is resident under a UAE tax law. A UAE branch of a foreign company does not qualify through the incorporation test. An individual is resident if his usual or primary place of residence and centre of financial and personal interests are in the UAE, if he spent 183 days or more in the UAE in the relevant 12 months, or if he spent 90 days or more and is a UAE or GCC national or holds a UAE residence permit, and also has a permanent place of residence or employment or business in the UAE.
Businesses mainly use the certificate to claim reduced withholding tax or other relief under a double tax agreement, when a foreign customer or tax authority asks for proof of UAE residence. It can also be issued for purposes other than a treaty claim.
How it works
- Applications are made to the FTA through EmaraTax, in the form and manner the FTA sets.
- A certificate covers a tax period, or any other 12 month period the applicant chooses. It can be for the current or a past period, never a future one, and never longer than 12 months.
- A company must have been incorporated or established for at least 12 months before it can apply.
- The FTA aims to process a complete application within 10 business days, plus 5 business days for a hard copy after the fee is paid.
- A Corporate Tax group cannot hold a certificate as a group; each member applies on its own.
Worked example
A Dubai limited liability company registered for Corporate Tax needs a hard copy certificate for a foreign customer. The FTA fees are set by Cabinet Decision No. 65 of 2020 and are not refunded if the application is rejected.
| Submission fee | AED 50 |
| Review and electronic certificate for a Corporate Tax registrant | AED 500 |
| Hard copy certificate | AED 250 |
| Total FTA fees | AED 800 |
A company without a Corporate Tax TRN would pay AED 1,750 instead of AED 500 for the review and certificate.
Common mistakes
- Applying for a period that has not started yet; the FTA only certifies current or past periods.
- Applying in the first year of a new company, before it has been established for 12 months.
- Assuming one certificate covers the next year too; each certificate covers one period of up to 12 months.
The law
Frequently asked questions
How long does a tax residency certificate take?
The FTA aims to complete an application within 10 business days of receiving it in full. A hard copy adds 5 business days from payment of the hard copy fee.
Can a UAE branch of a foreign company get a certificate?
Not through the incorporation test, which excludes branches registered by foreign companies. Certificates for treaty purposes follow separate rules, so the branch should check the treaty and the FTA conditions before applying.
Related terms
Resident person · Permanent establishment · Withholding tax · Taxable person. See every term in the UAE tax glossary.
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