A Tax Residency Certificate in UAE (also known as Tax Domicile Certificate), an official document, is issued by the Federal Tax Authority (FTA) to determine UAE tax residency for domestic and treaty purposes, with relief under Double Taxation Avoidance Agreements (DTAAs).
The certificate helps companies and people to reduce or exempt withholding taxes on cross-border income such as dividends, interest, and royalties based on the specific treaty, promoting cash flow and compliance outcomes. Submissions are made online via the EmaraTax platform, where users select certificate type, upload documents, pay fees, and receive digital issuance once they’ve been approved. In the 2024–2025 revisions, the FTA rendered timing rules, eligibility, and fee levels for TRCs more detailed, with domestic and treaty categories distinguishable, with different rates for registrants and non-registrants, and optional printed reports.
With greater inspection of physical presence and substance, proper preparation of robust documentation and aligning the 12 months with travel and finance records is essential to a problem-free approval. My Taxman’s end-to-end support streamlines eligibility determination, documentation, EmaraTax filing, and clarifications, thereby facilitating faster issuance and ensuring correct treaty usage.
- A Tax Residency Certificate is an FTA-issued certificate confirming that a person (individual or company) is a tax resident in the UAE for a specified period, used domestically and to access DTAA benefits in the foreign jurisdiction concerned.
- The FTA issues three certificate types via this service: TRCs for treaty purposes, TRCs for domestic purposes, and Commercial Activities Certificates, each with distinct uses and fee schedules.
- For treaty claims, a TRC is typically presented to the foreign tax authority or payer to secure reduced withholding tax or exemption, subject to meeting the specific treaty’s conditions and documentation.
Domestic TRC vs treaty TRC
- Domestic TRC confirms residency under UAE domestic criteria for local administrative uses and certain domestic procedures, but is not, by itself, evidence for foreign treaty relief unless accepted by the other country.
- Treaty TRC is explicitly intended to support DTAA claims abroad and must correspond to the relevant 12‑month period aligned with the income and filing timeline in the foreign jurisdiction.
Who can apply: individuals and companies
- Individuals generally qualify if they meet physical presence and residency conditions, such as 183 days or more within a 12‑month period, with documentary evidence like ICA/GDRFA entry-exit reports and tenancy contracts, as clarified in FTA and professional guidance.
- The companies qualify if they are incorporated and operational in the UAE with adequate substance, typically for at least 12 months, supported by audited accounts, a valid trade license, bank statements, and tenancy contracts.
- FTA receives applications through EmaraTax for both natural and juridical persons, with timeline instructions that individuals can register once they fulfill conditions and companies after a minimum of three months into the relevant period, while newly registered ones could need 12 months before becoming eligible.
Eligibility intricacies and timing (2024–2025)
- October 2024 FTA guidance clarified the timing of the application: corporates may apply three months into the relevant tax period, and individuals may apply as soon as they meet the residency requirements. Future periods are not permitted due to the uncertainty of qualification.
- Newly incorporated companies that have not yet filed tax returns must typically be established for 12 months before being eligible for a TRC, according to advisory summaries of the FTA guide.
- For individuals, the FTA and advisers emphasize that days counted include parts of days physically present, and that exceptional-circumstance days may be disregarded, reinforcing accurate use of ICA/GDRFA reports when substantiating presence.
Fees (official FTA schedule)
- According to the FTA service page, fees include AED 50 submission and issuance fees that vary by applicant type: AED 500 for tax registrants and commercial activity, AED 1,000 for non‑registrant natural persons, and AED 1,750 for non‑registrant legal persons, with an optional AED 250 per printed copy.
- EmaraTax workflow requires paying the submission fee at filing and the processing/issuance fee upon approval, which is reflected in FTA instructions and portal steps.
- Third-party overviews echo the same fee tiers and clarify that tax‑registered applicants (with TRN) fall under lower issuance fees for certain certificates.
How to apply to EmaraTax: step-by-step
- Step 1: Access EmaraTax and log in or create an account; existing TRC (tax residency certificate) portal users can link their account via EmaraTax, and tax registrants can autofill data with their TRN in the TRC module.
- Step 2: Choose “Other Services,” select the requested certificate type (Tax Residency Certificate), and specify whether it is for domestic or treaty purposes as applicable.
- Step 3: Complete the application with accurate period dates, applicant details, and certificate use case; upload all required documents in a clear, legible format per FTA instructions.
- Step 4: Pay the AED 50 submission fee to file. Monitor the portal for clarification requests. Upon approval, pay the relevant issuance fee to receive the certificate digitally or request a printed copy for an additional cost.
- Typical processing timelines range from a few business days to a couple of weeks, depending on the completeness of the information, workload, and whether the FTA requests clarifications or additional evidence.
Documents checklist
- Individuals: passport, Emirates ID, residence visa, entry/exit report (ICA/GDRFA), tenancy contract (Ejari or equivalent), six‑month bank statements, and income proof (employment contract or similar), aligned to FTA guidance and advisory checklists.
- Companies: trade license, MOA/AOA or establishment docs, shareholders’/managers’ IDs, audited financials for the relevant year, six‑month company bank statements, tenancy contract, and, if applicable, power of attorney for authorized signatories.
- Format and quality matter: use stamped statements, certified tenancy contracts, and ensure names/addresses are consistent across documents to avoid clarifications or rejections on EmaraTax.
183‑day rule explained (and practical tactics)
- Under UAE domestic rules and FTA clarifications, physical presence of 183 days or more in any 12‑month period supports UAE tax residency status, with days or parts of days counted as present, evidenced by ICA/GDRFA records.
- Individuals who travel frequently should align the requested 12‑month period to maximize qualifying days and ensure the residency evidence (lease, utilities) and bank statements match the period selected in the application.
- Certain treaties include tie‑breaker tests that may require assessing the centre of vital interests or habitual abode, so obtaining a TRC should be coordinated with treaty analysis for the source country before filing relief forms.
Validity and renewal
- A TRC (tax residency certificate) is generally valid for one year for the specified period and must be reapplied annually to continue treaty claims for subsequent periods, as described by the FTA and professional summaries.
- Renewal best practices include early planning to avoid gaps in treaty relief, updating audited financials for companies, and refreshing six‑month bank statements and tenancy documents before the next application window.
- Since future periods cannot be certified, renewals should be timed once the qualifying period is underway and criteria are demonstrably met, per FTA guidance on timing.
Common rejection reasons and fixes
- Frequent causes include insufficient days for individuals, missing or inconsistent documents, inactive bank statements, a lack of audited financials for companies, or mismatched addresses across tenancy and bank statements.
- Fixes involve recalibrating the 12‑month period, obtaining ICA/GDRFA reports covering the correct period, securing certified tenancy contracts and stamped bank statements, and ensuring audited financials align with the relevant year.
- Offshore or non‑substantive structures often face ineligibility; establishing UAE substance and operational presence is crucial before attempting a TRC application.
DTAA benefits: when a TRC matters
- With an FTA-issued TRC, applicants can seek treaty relief abroad on cross‑border income items like dividends, interest, and royalties, with actual rates and conditions determined by the bilateral treaty articles.
- The TRC is typically attached to foreign tax forms or submitted to withholding agents to secure reduced rates at source or claim refunds, subject to that jurisdiction’s procedures and deadlines.
- Example use-cases include UAE residents investing abroad, UAE holding companies receiving dividends, and founders drawing royalty or service income from treaty partner countries.
Special cases: free zones, new companies, and non‑registrants
- Free zone entities can apply if they meet substance and documentation standards similar to mainland companies, including audited accounts and operational evidence for the period claimed.
- Newly incorporated companies that have not completed a full year may be ineligible for a TRC until they satisfy establishment and timing criteria, per the FTA 2024 guide summaries.
- Non‑registrants can apply via EmaraTax using “No TRN” and pay the non‑registrant fees; registrants with a TRN benefit from autofill and a different issuance fee bracket for certain certificates.
How to get Tax Residency Certificate in Dubai: a quick checklist
- Confirm eligibility window and pick the optimal 12‑month period aligned to travel and financial records for individuals or the accounting year for companies.
- Prepare documents in high-quality scans, ensuring consistency across names, addresses, and dates; obtain stamped statements and certified tenancy contracts where required.
- File through EmaraTax, respond promptly to clarifications, and plan for renewal timelines to maintain uninterrupted treaty benefits year over year.
Why choose My Taxman: Tax consultant in Dubai
- My Taxman provides pre‑filing eligibility reviews, treaty diagnostics, document curation, EmaraTax filing, and end‑to‑end handling of FTA clarifications for faster approvals with fewer queries.
- For complex profiles—multi-jurisdiction travel, holding structures, or new entities—My Taxman aligns TRC timing with financial reporting and treaty calendars to optimize relief and minimize audit risk.
Conclusion
Obtaining a Tax Residency Certificate in UAE with EmaraTax entails careful planning of eligibility periods, strict documentation, and an understanding of treaty mechanics to confidently secure cross‑border tax relief. With new FTA timing regulations, fee structures, and additional verification for physical presence and substance, professional guidance minimizes delays and maximizes chances of approval. For a start-to-finish TRC experience—from eligibility check and document curation to EmaraTax submission and clarifications—contact My Taxman at +971-543223140 for specialized support in Dubai and across the UAE.
Frequently Asked Questions (FAQs)
What is a Tax Residency Certificate in UAE?
A TRC is an FTA document confirming UAE tax residency for a specified period, used domestically and for treaty relief under DTAAs when presented to foreign authorities.
How long does it take to get a TRC?
Processing can range from several business days to a couple of weeks, depending on completeness and FTA workload, with submission and issuance steps managed on EmaraTax.
What are the current fees?
FTA indicates AED 50 submission plus issuance fees of AED 500 for tax registrants, AED 1,000 for non‑registrant individuals, AED 1,750 for non‑registrant legal persons, and AED 250 per printed copy if requested.
Can future periods be certified?
No, FTA guidance states that future periods are not allowed; instead, companies should apply within or after the relevant period once the criteria are met, typically within three months of the period.
Do free zone companies qualify?
Yes, they meet the UAE standards with audited financials, tenancy, and active banking. In that case, offshore or non‑substantive entities generally do not qualify.
What proof is required for the 183‑day rule?
ICA/GDRFA entry-exit report plus tenancy and financial evidence, with days or parts of days counted as present; authorities may disregard exceptional-circumstance days.
Is a domestic TRC enough for treaty benefits?
A domestic TRC is not specifically for treaty relief; for DTA claims, use the treaty TRC and ensure the certificate period aligns with foreign filing requirements.
Can registrants and non‑registrants both apply?
Yes, registrants use TRN for autofill and pay registrant fees. At the same time, non‑registrants select “No TRN” and pay the corresponding issuance fee category.
