What is a UAE Tax Residency Certificate?
A UAE Tax Residency Certificate (TRC) is an official document issued by the Federal Tax Authority (FTA) to confirm an individual's tax residency status for a specified period and purpose. It can be used as proof of tax residency or to support claims under double taxation agreements between the UAE and other countries.
What Are the Tax Residency Requirements for Individuals?
Under Cabinet Decision No. 85 of 2022 and Ministerial Decision No. 27 of 2023, individuals can qualify for UAE domestic tax residency through three main routes. Each route has different requirements relating to physical presence, residency status, and personal or financial connections to the UAE.
Applicants need to satisfy at least one of the following conditions.
1. Physical Presence of 183 Days or More
Individuals who spend at least 183 days in the UAE within a period of 12 consecutive months can qualify as UAE tax residents.
These days do not need to be consecutive, meaning time spent in the country across multiple visits can count towards the requirement.
Applicants should maintain an official entry and exit report to confirm their time spent in the UAE.
2. Physical Presence of 90 Days or More With Additional Conditions
Individuals who spend at least 90 days in the UAE within 12 consecutive months may also qualify, provided they meet additional requirements.
To be eligible, the applicant must be a UAE national, GCC national or holder of a valid UAE residence permit.
They must also meet at least one of the following conditions:
- Permanent Place of Residence: Have a home in the UAE that is continuously available for their personal use.
- Employment or Business in the UAE: Be employed or carry out business activities within the country.
For property owners, having a home available for personal use may help satisfy the permanent residence requirement. However, owning a property alone is insufficient. Applicants must still meet the minimum.
How Does Property Ownership Support a UAE Tax Residency Application?
Owning property in the UAE can support a tax residency application, especially when it serves as a permanent place of residence. However, the key factor is not simply owning a home, but whether the applicant can live in it continuously.
The way the property is used can therefore affect its relevance to the application:
- Property Available for Personal Use: A completed home that is available for the owner's occupation may help establish a permanent place of residence. Ownership documents and evidence of availability can support the application.
- Property Rented to a Tenant: If the property is leased to a tenant, ownership alone may not satisfy the permanent residence requirement, as the home may not be available for the owner's personal use.
- Off-Plan Property: Purchasing a property that is still under construction does not establish a permanent place of residence, as the home is not yet available for occupation.
For buyers exploring Binghatti projects, understanding when a property will be ready for occupation can help with residential planning. However, eligibility for a UAE Tax Residency Certificate should always be assessed against the applicable residency requirements rather than property ownership alone.
Are the Requirements Different for Domestic and Treaty Tax Residency Certificates?
The Federal Tax Authority (FTA) issues Tax Residency Certificates for different purposes, and the eligibility requirements depend on how the certificate will be used.
The main distinction is between:
- Domestic Tax Residency: Applicants must meet the UAE's domestic tax residency requirements, such as the physical presence or permanent residence conditions explained earlier.
- Tax Treaty Purposes: Applicants seeking a certificate under a double taxation agreement must satisfy the residency requirements of the relevant treaty between the UAE and the other country.
It is important to understand that qualifying for UAE tax residency under the domestic 90-day rule does not automatically establish eligibility under every double taxation agreement.
Before applying, confirm the purpose of your certificate and review the requirements of the relevant treaty, where applicable.
A UAE Tax Residency Certificate also does not automatically end your tax residency in another country or exempt all foreign income from taxation. These matters depend on the other country's tax laws and the applicable agreement.
What Documents Are Required for a UAE Tax Residency Certificate?
The documents required for a UAE Tax Residency Certificate depend on the applicant's eligibility conditions and the purpose of the certificate. Property owners should prepare the relevant supporting documents according to the Federal Tax Authority's (FTA) requirements.
These may include:
- Identity Documents: A valid passport, Emirates ID, and UAE residence permit, where applicable.
- Proof of Physical Presence: An official entry and exit report confirming the number of days spent in the UAE during the relevant period.
- Property Ownership or Accommodation Documents: A title deed and utility bill in the applicant's name, or relevant tenancy documents demonstrating access to a permanent home in the UAE.
- Employment or Business Records: An employment contract, salary certificate or business documents, where required to establish the applicant's connection to the UAE.
- Personal and Financial Connections: Supporting documents demonstrating that the UAE is the applicant's primary place of residence and centre of personal and financial interests, where applicable.
- Additional Treaty Documents: Any further information required under the relevant double taxation agreement or by the requesting foreign authority.
Before submitting an application, applicants should check the latest FTA document requirements and ensure that their supporting records correspond to the tax residency period for which the certificate is requested.
How Do You Apply for a UAE Tax Residency Certificate?
Individuals can apply for a UAE Tax Residency Certificate online through the Federal Tax Authority's (FTA) EmaraTax platform. The process involves selecting the certificate type, providing the required information and submitting supporting documents for review.
Follow these steps to complete your application:
1. Choose the Certificate Type and Period
Start by determining whether you need the certificate for domestic tax residency or a double taxation agreement. If applying for treaty purposes, select the relevant country.
You will also need to specify the period for which you are requesting the certificate and ensure that you meet the applicable residency requirements.
2. Access the Application Through EmaraTax
Log in to your EmaraTax account or create one if you are a new user. Navigate to Other Services and select the Tax Residency Certificate service.
If you have a Corporate Tax registration number, select the relevant registration. Otherwise, proceed using the option for applicants without one.
3. Submit the Required Documents and Pay the Fees
Complete the application with your personal information and upload the supporting documents required for your eligibility route.
Review the details carefully before submitting and pay the applicable application and review fees.
4. Track Your Application and Receive the Certificate
After submission, you can monitor your application status through EmaraTax. The FTA may request additional documents or information during the review process.
Once your application is approved, the Tax Residency Certificate will be available for download through the platform. A digital copy will also be sent to your registered email address.
How Much Does a UAE Tax Residency Certificate Cost?
The Federal Tax Authority (FTA) charges different fees for a UAE Tax Residency Certificate depending on whether the applicant has a Corporate Tax Registration Number (TRN).
The fees for individual applicants are as follows:
| Fee Type | Amount |
|---|---|
| Application submission fee | AED 50 |
| Certificate review (with a Corporate Tax TRN) | AED 500 |
| Certificate review (without a Corporate Tax TRN) | AED 1,000 |
| Optional printed certificate | AED 250 per copy |
For example, an individual applying without a Corporate Tax TRN would pay a total of AED 1,050, including the application submission fee and electronic certificate review.
It is important to note that the FTA does not refund the applicable fees if an application is rejected. Applicants should therefore confirm their eligibility and prepare the required documents before submitting their application.
Conclusion
Owning a property in the UAE can support a Tax Residency Certificate application, but eligibility ultimately depends on meeting the Federal Tax Authority's requirements. Understanding how property ownership relates to tax residency can help applicants determine whether they qualify and prepare the necessary documentation.
Before applying, it is important to review the relevant residency conditions, confirm the purpose of the certificate, and ensure that the supporting documents accurately reflect your circumstances.
If you are considering purchasing a property in Dubai, explore the available Binghatti properties or contact our property consultants on +971 800 15 for more information about available developments and residences.
Starting AED 799,999
Al Jaddaf
STUDIO | 1 BR | 2 BR | 3 BR
