CORPORATE COMPLIANCE SERVICES

TAX RESIDENCY

COMPANY TAX RESIDENCY CERTIFICATE (TRC)

Importance and Benefits of TRC

In today’s interconnected business world, securing a Tax Residency Certificate (TRC) is vital for businesses operating internationally, especially within the distinctive economic landscape of the United Arab Emirates (UAE). A TRC validates your business’s residency in the UAE, a key factor in utilizing the UAE’s Double Taxation Agreements (DTAs) with other countries to potentially reduce tax liabilities.

Obtaining a TRC underscores your business’s commitment to transparency and adherence to international tax regulations, opening doors to a range of financial benefits under DTAs. It’s essential to renew this certification annually to maintain these benefits and ensure ongoing compliance.

TRC Application Process and Document Requirements

Our service focuses on the meticulous preparation and submission of the necessary documents for the TRC application, adhering to the criteria set by the Ministry. This includes, but is not limited to, providing:

A valid trade license and, if applicable, a certificate of company registration in the UAE.
Proof of a physical operational office within the UAE, such as a lease agreement.
Share certificates and detailed information about shareholders.
Audited financial statements from the last financial year.
The last six months’ company bank statements from a UAE bank.
For companies operational in other countries, relevant tax forms or returns.
Identification and residency proofs for the company’s directors and managers.
A No Objection Certificate (NOC) from local sponsors, if applicable.
Other supporting documents as requested by the authorities, which could include a business plan or memorandum of association.

While we provide comprehensive assistance in gathering and submitting these documents, meeting the application prerequisites precisely, the requirements listed are for informational purposes and may not cover all potential requests from the UAE authorities.

PERSONAL TAX RESIDENCY CERTIFICATE (TRC)

Importance and Criteria for TRC

Our Personal Tax Residency Certificate (TRC) Application Services are expertly designed to ensure your application adheres to the latest legal standards, streamlining the process for enhanced efficiency.

A TRC is pivotal for individuals seeking to optimize their tax status internationally, particularly within the UAE’s unique economic landscape. It officially recognizes your tax residency in the UAE, crucial for utilizing the UAE’s Double Taxation Agreements (DTAs) to potentially minimize tax obligations.

UAE Federal Tax Authority (FTA) issues TRCs based on:

Domestic Law Criteria: An individual can qualify for a Domestic TRC if they have stayed in the UAE for over 90 days, meeting the domestic residency requirements.
DTT TRC Requirements: For a DTT TRC, the individual must demonstrate physical presence in the UAE for at least 183 days.
DTT Specifications: If applying for a DTT TRC under conditions where the 183-day threshold in the UAE is not met, specific details of the DTA need to be examined. A case must be presented to the FTA, substantiating the claim with relevant proof.

TRC Application Process and Documentation

Our service ensures thorough preparation and submission of all required documentation for the TRC application, aligning with the Ministry’s guidelines and the new residency rules. We provide comprehensive support in compiling:

Valid passport and UAE visa copies.
Proof of physical residence in the UAE, such as housing contracts or utility bills.
Six months of UAE bank statements.
Employment certificates or proof of income within the UAE.
Any additional documentation as required by UAE authorities to support your tax residency claim.

While our expertise aims to facilitate the TRC application process for individuals, ensuring strategic tax planning and compliance, it’s crucial to note that these requirements are a general guide and may not cover all documents requested by the authorities.

The introduction of new tax residency rules necessitates a meticulous approach to the TRC application, especially concerning the annual renewal for sustained benefits and compliance. Although we provide comprehensive assistance throughout this process, the issuance of the TRC ultimately lies with the UAE FTA, and compliance with any further requests for documentation or evidence is essential for a successful application.

Legal Compliance and Disclaimer

The information provided does not constitute a direct or implied recommendation or endorsement of any strategy, decision, or action. Clients are encouraged to consult with tax, legal, or professional advisors to determine the applicability of the information to their specific circumstances. Europe Emirates Group expressly disclaims any liability for errors or omissions in this information or for any loss or damage suffered by any person as a result of reliance on the information provided. Use of and reliance on the information is at the user’s own risk.