The UAE Tax Residency Certificate (TRC) is an official government document issued by the Federal Tax Authority (FTA). It certifies that an individual or legal entity is a tax resident of the UAE for a specific financial year. Possession of a TRC is the primary method to claim benefits under the UAE’s 140+ Double Taxation Avoidance Agreements (DTAAs), preventing income from being taxed in two different countries.
A TRC is an FTA-issued document certifying tax residency in the UAE for a chosen 12-month period. It helps claim DTA relief (e.g., lower withholding taxes abroad), proves residency for banks or immigration benefits, and supports domestic compliance under Corporate Tax Law. With no personal income tax in the UAE (except business income >AED 1M), it’s valuable for expats and international businesses. It certifies that an individual or entity is a tax resident of the UAE for a specific financial year, enabling them to claim tax treaty benefits (avoiding double taxation) in other countries.
A TRC is valid for one year specific to the financial period you selected (e.g., Jan 1, 2024 – Dec 31, 2024). It does not auto-renew. You must apply for a new certificate for each new financial year.
| Feature | Old Rule (Legacy) | New 2025 Rule (Current) |
|---|---|---|
| Platform | Old FTA Portal | EmaraTax (UAE Pass Integrated) |
| Payment Method | e-Dirham Cards | Credit Card / Apple Pay / Tahseel |
| Company Financials | Audited Financials Mandatory | Simplified: Management accounts often accepted if applying during the tax period. |
| Fee Discount | For any Tax Registrant | Strictly for Corporate Tax (CT) Registrants (VAT TRN does not qualify). |
| Bank Statements | Mandatory for all Individuals | Waived for specific DTA applications if other income proof is strong (Source: FTA TPGTR1). |
| Timing | Must wait until year-end | Mid-Year Applications: Allowed once criteria (e.g., 183 days) are met. |
The UAE tax residency framework, updated via the FTA’s October 2024 Tax Procedures Guide (TPGTR1), clarifies distinctions between “Resident Person” (for Corporate Tax) and “Tax Resident” (for domestic law or DTAs). Released in response to Cabinet Decision No. 85 of 2022, the guide introduced flexibilities effective late 2024 and applicable in 2025, including mid-period applications and reduced documentation. As of November 20, 2025, the EmaraTax portal reflects these changes, with processing fully digital via UAE Pass integration.
The UAE has signed over 146 Double Taxation Avoidance Agreements (DTAAs) with countries globally (including India, UK, France, and Saudi Arabia). Obtaining a TRC unlocks specific financial advantages:
| Concept | Applies To | Implications | TRC Eligible? |
|---|---|---|---|
| Resident Person (Corporate Tax Law) | Companies with UAE incorporation/POEM; Individuals with Business >AED 1M | Taxed on worldwide (companies) or business income | Yes, if also Tax Resident |
| Tax Resident (Domestic Law) | Meets Cabinet Decision No. 85 | Basis for domestic TRC | Yes |
| Tax Resident (DTA) | Per specific treaty rules | Treaty benefits (e.g., tie-breakers) | Yes (DTA-specific) |
| Reason | How to Avoid |
|---|---|
| Mismatched / Incomplete Docs | Use FTA checklists and match the certificate period exactly |
| Incorrect Days Calculation | Download the official ICP entry/exit report |
| Insufficient POEM Proof | Provide board minutes and decision logs |
| Applying Too Early | Ensure residency criteria (e.g., 183 days; 3 months for companies) are met |
The standard processing time is 3 to 5 business days for the electronic certificate after the application is approved and fees are paid. If you request a Special Form (stamped physical document), allow an additional 5–7 days for courier delivery.
Yes. If you are an Indian national living in the UAE, the UAE Tax Residency Certificate (TRC) alone is not enough to claim DTAA benefits in India. The Indian Income Tax Department requires Form 10F in addition to your UAE TRC.
Filing Form 10F + UAE TRC ensures your Indian income is correctly treated under the DTAA and prevents unnecessary TDS deduction in India.
Applying for a Tax Residency Certificate involves more than just uploading a passport. The FTA strictly scrutinizes day counts, source of income, and “ties to the UAE.” A simple error often leads to rejection and the forfeiture of your submission fees.
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Disclaimer: This guide is for informational purposes based on regulations as of November 2025. Tax laws are subject to change. For complex cases, consult a certified tax agent or legal advisor.
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