Tax Residency Certificate (TRC) in the UAE

A Tax Residency Certificate is issued by the Federal Tax Authority to confirm that a company or individual is tax resident in the UAE. It is used to claim relief under the UAE’s double tax treaties, for example to reduce withholding tax on dividends, interest or royalties paid from India, the UK, Germany or other treaty countries, and to evidence residence status to foreign tax authorities and banks. Dawn Consultancy prepares and files TRC applications on EmaraTax for companies and individuals, including the supporting financial statements and lease documentation.

Types of certificate

• Treaty TRC: issued for a specific double tax treaty country and tax year, used to claim treaty benefits abroad
• Domestic TRC: confirms UAE tax residence under domestic law without reference to a treaty, often requested by foreign banks or employers

Eligibility for companies

• Incorporated or established in the UAE (mainland or free zone), or a foreign company effectively managed and controlled in the UAE
• Active for at least one year before the application
• Audited financial statements for the relevant financial year, prepared by a UAE-registered audit firm
• Physical office in the UAE evidenced by a registered lease (Ejari or free zone lease)
• Offshore companies are generally not eligible, as they are not treated as UAE tax residents for treaty purposes

Eligibility for individuals

An individual is a UAE tax resident if their usual or principal place of residence and centre of financial and personal interests is in the UAE, or if they were physically present in the UAE for 183 days or more in a 12-month period, or for 90 days or more with a UAE residence visa or GCC nationality and a permanent home or employment or business in the UAE. For treaty certificates the FTA generally expects at least 183 days of presence in the relevant year, evidenced by an immigration entry and exit report.

Documents required

Companies: trade licence, memorandum of association, audited financial statements, lease agreement, six months of bank statements, passport and Emirates ID of the authorised signatory, and the foreign tax form if the treaty country requires the FTA to stamp its own form.

Individuals: passport, Emirates ID, residence visa, entry and exit report from the immigration authority, tenancy contract or title deed, six months of bank statements, salary certificate or proof of income.

Our process

1. Eligibility check against the treaty country’s requirements and the FTA’s conditions
2. Preparation of the application on EmaraTax and upload of supporting documents
3. Response to FTA queries and payment of the FTA fees
4. Issue of the certificate, typically within a few working days of approval, and stamping of any foreign tax form

Where the applicant’s financial statements are not yet audited, we complete the audit first so that the TRC application is not rejected.

Frequently asked questions

Can a newly incorporated company obtain a TRC?
Not in its first year. The company must have completed at least one financial year and have audited financial statements for it.

Is a TRC valid for all countries?
A treaty TRC is issued for one country and one tax year. Separate applications are required for each treaty country.

Does a TRC exempt my company from UAE Corporate Tax?
No. A TRC confirms residence; it does not change the company’s UAE Corporate Tax position.

Can a free zone company get a TRC?
Yes, provided it has a physical office, audited accounts and genuine activity in the UAE.

Apply

Email your trade licence or passport details to info@dawnconsultancy.com, call +971 55 441 1036, or request a call back. Related: Corporate Tax services and audit services.