Documents Required For TRC Certificate In UAE

Tax planning and compliance have become essential in the current globally interconnected economy for both individuals and companies. Among all the compliance factors, the Tax Residency Certificate comes across as a crucial one. The Tax Residency Certificate (TRC) is one of the most critical documents that can help you easily manage your international taxation issues. The TRC certificate Dubai, UAE, assists in demonstrating your tax residency in the UAE and allows you to gain benefits under the double taxation avoidance agreements (DTAA), which are in place between the UAE and other countries.

Obtaining a TRC can be a significant financial and legal advantage, whether you are a company located in the UAE or an individual working or investing in the country. However, the whole process of application involves providing the right documents as well as knowing the eligibility conditions. The following blog will present to you all the necessary information related to the TRC application documents, requirements, process, and benefits of getting it.

What is a TRC Certificate in UAE?

A Tax Residency Certificate UAE is an official document issued by the Federal Tax Authority (FTA) of the United Arab Emirates. It confirms that a person or business is a UAE tax resident. This certificate is used primarily to claim tax benefits under the Double Tax Avoidance Agreements (DTAA) that the UAE has with other countries. The UAE tax certificate is valid for one year and can help to avoid being taxed twice on the same income. Both residents and registered businesses in the UAE can apply for a TRC.

Documents Required for TRC Certificate Application in UAE

Having the right paperwork on hand is crucial for a successful and seamless application process for TRC UAE. However, if you are confused about the documents, you can get assistance from reliable experts like Arabian Wingz. Here is a complete overview of key documents required for both individuals as well as companies: 

For Individuals

The comprehensive TRC application documents for individuals include: 

• Valid Emirates ID: You are required to submit a copy of your Emirates ID as confirmation of your residency in UAE.

• Passport Copy with Valid UAE Visa: Your passport copy, along with the residency visa page, is needed to indicate your legal stay in the UAE.

• Proof of Physical Stay in the UAE: An immigration report or residence proof to indicate that you have been in the UAE for a minimum period of 183 days in the given year.

• Tenancy Contract or Title Deed: A rental agreement or property ownership proof is required to show your claim of residence in the UAE through certification.

• Bank Statement for 6 Months: Present the bank statements from a bank situated in the UAE, showing your financial activities for that period.

• Income Proof or Salary Certificate: A certificate indicating your salary from your employer or your income proof to show your source of earnings in the UAE.

• Tax Forms from Foreign Country: Certain countries could request that you provide particular tax forms in order to claim the benefits of the treaty.

For Businesses

Arabian Wingz, one of the leading business setup consultancy experts in the UAE, can help businesses with the collection of the right documents. Here is a complete list of required documents for businesses for the TRC application procedure. 

• Trade License Copy: The company should present a permissible trade license that is issued in the UAE.

• Memorandum of Association (MOA): This paper affirms the company’s setup and the associates.

• Company’s Establishment Contract:  It is a legal document that shows the company was created and registered in the UAE.

• Tenancy Contract or Office Lease Agreement:  Business address proof via tenancy contract or lease agreement is needed.

• Bank Statement for 6 Months: Send the bank statements of the company accounts in which the name of the company is visible.

• Audited Financial Statements: The company is required to submit its audited accounts or financial reports for the applicable year.

• Organizational Structure Chart: An illustration depicting the company’s ownership and management structure is a must.

• Passport Copies of Shareholders: Passport photocopies of all the shareholders who are part of the company are needed.

All these TRC application documents are essential and must be in Arabic or an official translation.

How to Apply for a TRC Certificate in UAE

You can apply online through the Federal Tax Authority (FTA) portal to receive the tax residency certificate UAE. Here are the key steps to be followed: 

• Register on the FTA website: Create an account on the official FTA portal for yourself or your business.

• Upload the necessary files:  Send in all essential documents in the appropriate format (scanned copies or PDFs). These are the necessary UAE tax certificate requirements that need to be given.

• Make the Payment: The portal requires online payment of the standard application fee.

• Application Review: After reviewing your application, the FTA might ask for more documents.

• Issuing Certificates: The certificate is issued digitally and is available for download after approval.

You can apply TRC UAE more effectively if you follow these steps.

Benefits of Having a TRC Certificate in UAE

Getting a TRC certificate Dubai, UAE, offers numerous advantages. Here’s why it’s worth applying:

• Avoid Double Taxation:  With a TRC, you are entitled to the tax relief provided by the Double Taxation Avoidance Agreements, which means that your income will be taxed only once, in the UAE, and not again in your home country. Hence, no financial duplication will occur.

• Legal Proof of UAE Residency: The TRC serves as official proof of your tax residency in the UAE and supports your argument of being a strong legal taxpayer in the UAE during any tax-related examination by other jurisdictions.

• Enhances Financial Credibility: A TRC truly elevates your status and trust among banks, tax authorities, and foreign institutions, proving the residency and tax compliance. Thus, it may result in an easier and quicker process of getting loans, opening accounts, and winning investors’ trust.

• Essential for Global Expansion: A TRC grants businesses the right to enter into new markets by taking advantage of international tax treaties, reducing the tax burden overseas, and making the expansion more cost-efficient and strategically favorable when working with foreign clients or governments.

• Required for International Tax Filings: In most cases, a TRC is required when submitting tax returns or income declarations in foreign countries, since many jurisdictions demand this certificate to process claims for tax relief or treaty benefits in accordance with their international tax regulations.

Conclusion

Getting a TRC certificate Dubai, UAE, is a strategic step for people wanting to avoid double taxation and, at the same time, boost their financial profile. In either case of an individual earning or a business being registered, the certificate confirms the taxpayer’s residency in the UAE and permits the taxpayer to benefit from the global tax treaties to the fullest extent. Despite the UAE tax certificate requirements making the process look challenging, having your documents ready can make it less complicated.

However, Arabian Wingz, a reliable business consultant in the UAE, provides complete support for acquiring your Tax Residency Certificate. Our experts deal with every aspect, from document preparation to final submission, with accuracy and professionalism. We do not allow any paperwork or delays to hinder your financial goals. So, get in touch with Arabian Wingz and obtain your TRC certificate Dubai without any hassle. Visit our website or make a call to begin your application journey now!

FAQs

1. Who is eligible to apply for a TRC in the United Arab Emirates?

Eligible parties include people who have been in the UAE for more than 183 days, as well as businesses that are registered and operating in the UAE.

2. What is the validity period of the TRC?

The certificate is valid for a year after it is issued.

3. How much does it cost to apply for TRC?

For individuals, the application fee is approximately AED 100; for businesses, it may be AED 1,000 or more.

4. Can I get a TRC if I don’t have a tenancy contract?

No, a valid UAE address proof, like a tenancy contract or title deed, is mandatory.

5. How can Arabian Wingz help me with a Tax Residency Certificate?

Arabian Wingz offers professional assistance in preparing documents, submitting your application, and ensuring smooth approval of your TRC certificate in Dubai.