UAE: New guidance on tax residence and Tax Residency Certificate application procedures
Criteria for obtaining a Tax Residency Certificate
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October 30, 2024
The Federal Tax Authority (FTA) in October 2024 released a new guide on tax residence and Tax Residency Certificate (TRC) application procedures. The guide provides criteria for obtaining a TRC and includes the following updates:
- Timing of TRC applications
- The TRC can now be applied during the tax period (previously this was only possible after the completion of the tax period).
- Juridical persons (companies): Can apply after three months from the start of the tax period.
- Natural persons: Can apply as soon as they meet the residency criteria.
- Government entities: Can apply after one day into the relevant year.
- TRCs cannot be obtained for future periods, and newly incorporated companies must be established for 12 months before applying.
- The TRC can now be applied during the tax period (previously this was only possible after the completion of the tax period).
- Documentation requirements
- Natural persons (under double taxation agreement): Must provide proof of residency in UAE and salary certificate or source of income. Bank statements are no longer required.
- Natural persons (under UAE domestic law): In addition to the requirements for natural persons under a double taxation agreement, documents needed include proof of employment or business, proof of permanent residence, and proof of financial or personal interest in the UAE.
- Juridical persons: Corporate documentation is required. The requirement for audited financial statements has been removed.
Read an October 2024 report prepared by the KPMG member firm in the UAE