Eligibility criteria included; a 45 minutes process
UAE: People who stay in the UAE for 183 or more days during the year are considered tax residents. They are eligible to apply for Tax Residency Certificates (TRCs) and gain access to Double Tax Avoidance Agreements (DTAAs) that the UAE has negotiated with several nations.
An application can be submitted in roughly 45 minutes, according to the Federal Tax Administration website. From the start of the applicant’s chosen financial year, the TRC is valid for a full calendar year. It further states that while calculating the 183-day threshold, all days or parts of days during which a person is physically present in the UAE will be taken into account.
Recently, a decision was made by the Ministry of Finance that clarified the procedures for determining tax residency.
Analysts have emphasised the country’s extremely simple domestic tax residency policy. According to Dariush Soudi, the founder of advisory firm Arena Consultancy, it is intended to guarantee that people who reside and work in the UAE are subject to fair and equitable taxation. TRCs will aid in preventing double taxation against UAE citizens.
For individuals who invest in foreign jurisdictions, taking advantage of double taxation arrangements is of tremendous interest, according to Arun Leslie John, the chief market analyst at Century Financial. This is especially true for nations with which the UAE maintains close trading relations.
Steps included in getting TRC
- Create a profile on the website for the UAE Federal Tax Authority portal
- Once logged in, select the ‘Services’ option.
- Choose “Certificates” from the drop-down option.
- From the menu, select “Request for Tax Residency Certificate”
- Fill out the application form displayed including name, Emirates ID number, tax identification number, and contact information.
- Upload the necessary documents in PDF or JPEG format like copies of passport, Emirates ID, lease agreement, etc.
- Before applying, double-check.
- After clicking “Submit”, the user will be taken to a payment portal. There will be a processing fee.
- The FTA will carefully examine your application after receiving it. If they decide to approve, the person will soon receive a TRC.
- This certificate will be delivered via email, but it will also be accessible for download via the person’s FTA account.
These are the processes outlined by John and this procedure may slightly vary according to the kind of person or organisation requesting the TRC.
The price is Dh50 for filing, Dh500 for all tax registrants, Dh1,000 for non-tax registrant natural individuals, and Dh1,750 for non-tax registrant legal persons.
