Tax Residency Certificate

Double Taxation and its lawful avoidance is a big concern for multinational businesses that operate across tax regimes. In the UAE, KSA and other GCC countries, firms can take advantage of the Double Tax Avoidance Agreements (DTAAs) signed by the respective governments with other countries.

Tax Residency Certificate (TRC) or Residency Certificate is an official certificate or document issued by the tax authority of a country to tax resident entities and individuals fulfilling the set residency criteria as per the Residency Regulations under the country’s domestic Income Tax Law. TRC is a prerequisite for claiming any benefits of lower or no taxation in the source or residence country in terms of DTAA.

In UAE, Tax Residency Certificate (TRC), also known as Tax Domicile Certificate, is a document issued by the UAE Ministry of Finance (MoF) evidencing companies or individuals as tax-paying residents of the UAE.

Corporate entities and resident individuals can apply for a Tax Residency Certificate, but an individual can apply for a Tax Residency Certificate only if he/she stays in the UAE at least for 180 days. Certain documents are required for the application of Tax Residency Certificate such as copies of the passport and Emirates ID, a valid Residence Permit, bank statements, etc.

It can be useful for individuals and companies to take advantage of the DTAAs. MBG Corporate Services has a team of UAE, KSA and GCC tax experts who specialise in the matters concerning DTAAs and TRC. Our team of experts have multiple years of experience managing Double Tax Avoidance Agreements and can ease the process for individuals or companies to obtain the Tax Residency Certificate. You can leverage their expertise to gain clarity on the tax treaty provisions and utilise them to gain a genuine advantage in your business interests.