Definition

A Tax Residency Certificate (TRC) is an official document issued by the UAE Ministry of Finance that confirms a company’s or individual’s tax residency status in the UAE. It is primarily used to access benefits under the UAE’s double taxation treaties with other countries.

Key points

• Eligibility: Both companies and individuals who have lived or operated in the UAE for at least 183 days (individuals) or 1 year (companies).
• Use: Avoid double taxation on international income, dividends, and royalties.
• Validity: Typically valid for one year from the date of issue.
• Requires submission of financial statements, tenancy contracts, bank statements, and other supporting documents.
• Issued directly by the Ministry of Finance through their online portal.

Practical example

A Dubai‑based consultancy earns income from a client in France. By presenting a UAE Tax Residency Certificate, it avoids paying French withholding tax, as the UAE–France tax treaty applies.

Why it matters

Obtaining a TRC is crucial for businesses and individuals with cross‑border income. It helps reduce tax liabilities abroad, supports compliance, and confirms legitimacy of UAE operations.