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What is Tax Residency Advisory in the UAE?
How Can Individuals and Businesses Establish UAE Tax Residency?
Individuals and businesses can establish UAE tax residency by meeting specific criteria set by the FTA and obtaining a Tax Residency Certificate (TRC).
For individuals:
- Spend at least 183 days in a 12-month period in the UAE, or meet other FTA-defined criteria.
- Maintain residential proof such as a valid UAE visa, tenancy contract, or utility bills.
- Submit an application to the FTA with supporting documents to obtain a TRC, which confirms UAE tax residency.
For businesses:
- Be incorporated or licensed in the UAE under mainland, free zone, or offshore regulations.
- Maintain head office, management, and accounting records within the UAE.
- Apply for a corporate TRC to confirm residency for treaty benefits under applicable DTAAs.
Professional tax residency advisory helps ensure all criteria are correctly met, documents are properly prepared, and applications are compliant with UAE regulations, minimizing the risk of rejection or disputes.
What is a Tax Residency Certificate (TRC) and How Do I Apply for One?
A Tax Residency Certificate (TRC) is an official document issued by the UAE FTA that certifies an individual or business as a tax resident of the UAE. It is primarily used to benefit from DTAAs, proving that the applicant is subject to UAE tax residency rules and eligible for treaty benefits, such as reduced withholding tax rates or exemptions on foreign income.
How to apply for a TRC:
- Eligibility Check: Ensure you meet UAE tax residency criteria:
- Individuals: Typically spend at least 183 days in the UAE per year.
- Businesses: Incorporated or licensed in the UAE, with management and accounting maintained locally.
- Prepare Documentation: Common documents include passport copy, UAE visa, Emirates ID, tenancy contract or proof of office, financial statements, and incorporation certificates for businesses.
- Submit Application: Apply through the FTA’s online portal, attaching all required documents.
- FTA Review: The FTA reviews the application and may request additional information or clarifications.
- Issuance: Once approved, the TRC is issued, usually valid for one year, and can be used for claiming treaty benefits abroad.
Professional advisory services help ensure the application is accurate, complete, and compliant, reducing delays or the risk of rejection.
What Documents are Required to Prove UAE Tax Residency?
| Category | Document | Purpose |
|---|---|---|
| Individual | Passport copy | Proof of identity. |
| Individual | UAE Visa | Confirms legal residency in the UAE. |
| Individual | Emirates ID | Official identification issued by the UAE. |
| Individual | Tenancy contract / Utility bills | Evidence of physical presence and residence in the UAE. |
| Individual | Bank statements | Supports proof of stay and local financial activity. |
| Business | Trade license / Incorporation certificate | Proof that the company is set up in the UAE. |
| Business | Corporate bank account statements | Shows financial operations within the UAE. |
| Business | Board resolution / Management documents | Confirms that company management and decision-making occur in the UAE. |
| Business | Lease agreement / Office proof | Evidence of UAE-based business operations. |
| Business | Financial statements | Supports reporting and tax residency claims under UAE Corporate Tax Law. |
UAE Direct Tax Services We Offer
Double Taxation Advisory
Foreign Tax Credit (FTC) Advisory
Permanent Establishment (PE) Advisor
Tax Residency Advisory
Transfer Pricing Advisory
Withholding Tax (WHT) Advisory
Digital Tax Solutions
UAE Double Taxation Advisory with RadiantBiz Tax
Initial Consultation and Residency Review
Compliance Check
Build Residency Strategy
Execute and Report
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