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UAE Tax Residence Certificate (“TRC”)

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What conditions must an Individual meet to be considered a Tax Resident in the UAE?
An Individual is considered a Tax Resident of the UAE if it meets one of the following Criteria:
  • 183 Days Rule: Physically present in the UAE for 183 days or more within a 12-month period.
  • 90 Days Rule: Physically present for 90 days or more within a 12-month period, and
            i. A UAE or GCC National, or Hold a valid UAE Resident Permit
               and
            ii. Have a Permanent Place of Residence in the UAE or Engage in Employment or Business in the UAE.
  • Primary Residence: Their Usual or Primary Place of Residence and Center of Financial and Personal Interests are in the UAE.
How do Double Tax Agreements (DTAs) affect Tax Residency?
  • DTA Rules: Each DTA has Specific Rules for determining Tax Residency for both Legal Persons and Individuals.
  • Different Criteria: DTA Criteria may differ from UAE domestic Tax Residency Requirements.
  • Precedence of DTAs: DTAs take Precedence over Domestic Laws, including the Corporate Tax Law and Cabinet Decision No. 85 of 2022.
  • Resident Person Definition: Being classified as a Resident Person under the Corporate Tax Law does not guarantee Tax Residency under a DTA.
  • Tax Residency Assignment: Under a DTA, Tax Residency may be assigned to the UAE or Another Jurisdiction based on the Agreement’s Terms and the Specific Circumstances.
How to apply for a UAE TRC?
A legal person or an individual can apply for a TRC through the FTA’s online EmaraTax portal using their EmaraTax account.
What Time Periods are covered by the UAE TRC?
  • Eligible Periods: A TRC can be issued only for the Current Tax Period or a Prior Tax Period.
  • Tax Period Definition:
             i. Legal Persons: The Financial Year (12-month period for preparing Financial Statements).
             ii. Individuals: The Gregorian Calendar Year (Jan-Dec).
  • Future Periods: A TRC cannot be issued for Future Periods (periods that have not started).
  • Duration Limit: The Certificate cannot cover a period longer than 12 months.
When can Applicants apply for a  UAE TRC for the Current Period?
  • Legal Persons: Application will be considered by the FTA after 3 months into the Current Period.
  • Individuals: Application will be considered by the FTA as soon as the Criteria for Tax Residency are met.
  • Government Entities and Government-Controlled Entities: Application will be considered by the FTA after 1 day into the Current Period.
  • Newly Incorporated Companies: Must be established for at least 12 months before applying for a TRC.
  • Exempt Persons: Can apply for a TRC as they are eligible to apply for the TRC.
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What conditions must a Legal Person meet to be considered a Tax Resident in the UAE?
A Legal Person is considered a Tax Resident of the UAE if it meets one of the following Criteria:
  • Incorporation: It is Incorporated or otherwise Formed or Recognised in the UAE, such as Limited Liability Company, Free Zone Company, Private Shareholding Company, Public and Private Joint Stock Company, Trusts etc.
  • Recognition under Tax Laws: It is considered a Tax Resident under other UAE Tax Laws, such as the UAE Corporate Tax Law.
What conditions must an Individual meet to be considered a Tax Resident in the UAE?
An Individual is considered a Tax Resident of the UAE if it meets one of the following Criteria:
  • 183 Days Rule: Physically present in the UAE for 183 days or more within a 12-month period.
  • 90 Days Rule: Physically present for 90 days or more within a 12-month period, and
            i. A UAE or GCC National, or Hold a valid UAE Resident Permit
               and
            ii. Have a Permanent Place of Residence in the UAE or Engage in Employment or Business in the UAE.
  • Primary Residence: Their Usual or Primary Place of Residence and Center of Financial and Personal Interests are in the UAE.
How do Double Tax Agreements (DTAs) affect Tax Residency?
  • DTA Rules: Each DTA has Specific Rules for determining Tax Residency for both Legal Persons and Individuals.
  • Different Criteria: DTA Criteria may differ from UAE domestic Tax Residency Requirements.
  • Precedence of DTAs: DTAs take Precedence over Domestic Laws, including the Corporate Tax Law and Cabinet Decision No. 85 of 2022.
  • Resident Person Definition: Being classified as a Resident Person under the Corporate Tax Law does not guarantee Tax Residency under a DTA.
  • Tax Residency Assignment: Under a DTA, Tax Residency may be assigned to the UAE or Another Jurisdiction based on the Agreement’s Terms and the Specific Circumstances.
How to apply for a UAE TRC?
A legal person or an individual can apply for a TRC through the FTA’s online EmaraTax portal using their EmaraTax account.
What Time Periods are covered by the UAE TRC?
  • Eligible Periods: A TRC can be issued only for the Current Tax Period or a Prior Tax Period.
  • Tax Period Definition:
             i. Legal Persons: The Financial Year (12-month period for preparing Financial Statements).
             ii. Individuals: The Gregorian Calendar Year (Jan-Dec).
  • Future Periods: A TRC cannot be issued for Future Periods (periods that have not started).
  • Duration Limit: The Certificate cannot cover a period longer than 12 months.
When can Applicants apply for a  UAE TRC for the Current Period?
  • Legal Persons: Application will be considered by the FTA after 3 months into the Current Period.
  • Individuals: Application will be considered by the FTA as soon as the Criteria for Tax Residency are met.
  • Government Entities and Government-Controlled Entities: Application will be considered by the FTA after 1 day into the Current Period.
  • Newly Incorporated Companies: Must be established for at least 12 months before applying for a TRC.
  • Exempt Persons: Can apply for a TRC as they are eligible to apply for the TRC.
Read More

What are the Criteria for Tax Residency in the UAE?
  • The Criteria for UAE Tax Residency is outlined in Article 53 of Federal Decree-Law No. 28 of 2022 and Cabinet Decision No. 85 of 2022. Further clarifications for Natural Persons are provided in Ministerial Decision No. 27 of 2023.
  • Meeting these criteria allows an Individual or Corporate Entity to be considered a Tax Resident in the UAE which can be confirmed through a TRC issued by the FTA.
  • However, being a Tax Resident does not automatically make a Person Liable for Corporate Tax, they must also qualify as a Taxable Person under the UAE Corporate Tax Law.
What conditions must a Legal Person meet to be considered a Tax Resident in the UAE?
A Legal Person is considered a Tax Resident of the UAE if it meets one of the following Criteria:
  • Incorporation: It is Incorporated or otherwise Formed or Recognised in the UAE, such as Limited Liability Company, Free Zone Company, Private Shareholding Company, Public and Private Joint Stock Company, Trusts etc.
  • Recognition under Tax Laws: It is considered a Tax Resident under other UAE Tax Laws, such as the UAE Corporate Tax Law.
What conditions must an Individual meet to be considered a Tax Resident in the UAE?
An Individual is considered a Tax Resident of the UAE if it meets one of the following Criteria:
  • 183 Days Rule: Physically present in the UAE for 183 days or more within a 12-month period.
  • 90 Days Rule: Physically present for 90 days or more within a 12-month period, and
            i. A UAE or GCC National, or Hold a valid UAE Resident Permit
               and
            ii. Have a Permanent Place of Residence in the UAE or Engage in Employment or Business in the UAE.
  • Primary Residence: Their Usual or Primary Place of Residence and Center of Financial and Personal Interests are in the UAE.
How do Double Tax Agreements (DTAs) affect Tax Residency?
  • DTA Rules: Each DTA has Specific Rules for determining Tax Residency for both Legal Persons and Individuals.
  • Different Criteria: DTA Criteria may differ from UAE domestic Tax Residency Requirements.
  • Precedence of DTAs: DTAs take Precedence over Domestic Laws, including the Corporate Tax Law and Cabinet Decision No. 85 of 2022.
  • Resident Person Definition: Being classified as a Resident Person under the Corporate Tax Law does not guarantee Tax Residency under a DTA.
  • Tax Residency Assignment: Under a DTA, Tax Residency may be assigned to the UAE or Another Jurisdiction based on the Agreement’s Terms and the Specific Circumstances.
How to apply for a UAE TRC?
A legal person or an individual can apply for a TRC through the FTA’s online EmaraTax portal using their EmaraTax account.
What Time Periods are covered by the UAE TRC?
  • Eligible Periods: A TRC can be issued only for the Current Tax Period or a Prior Tax Period.
  • Tax Period Definition:
             i. Legal Persons: The Financial Year (12-month period for preparing Financial Statements).
             ii. Individuals: The Gregorian Calendar Year (Jan-Dec).
  • Future Periods: A TRC cannot be issued for Future Periods (periods that have not started).
  • Duration Limit: The Certificate cannot cover a period longer than 12 months.
When can Applicants apply for a  UAE TRC for the Current Period?
  • Legal Persons: Application will be considered by the FTA after 3 months into the Current Period.
  • Individuals: Application will be considered by the FTA as soon as the Criteria for Tax Residency are met.
  • Government Entities and Government-Controlled Entities: Application will be considered by the FTA after 1 day into the Current Period.
  • Newly Incorporated Companies: Must be established for at least 12 months before applying for a TRC.
  • Exempt Persons: Can apply for a TRC as they are eligible to apply for the TRC.
Read More

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