A Tax Residency Certificate (TRC) – a Tax Domicile Certificate – is an official document issued by the UAE Federal Tax Authority (FTA) to individuals and companies as proof of their tax residency. This certificate allows them to benefit from the UAE's Double Taxation Avoidance Agreements (DTAAs) with over 110 countries. The TRC is valid for one year and helps prevent taxpayers from being taxed twice on the same income in different jurisdictions, promoting smoother international business and investments.

Types of Tax Residency Certificates 

1. International (Treaty) TRC

• Purpose: To claim relief under a Double Tax Treaty (DTT) between the UAE and another country.
• Used For:
• Avoiding double taxation on income, dividends, or capital gains in DTAA partner countries.
• Reducing withholding taxes on cross-border transactions.
• Residency Requirement: 183 days within 12 consecutive months (or as per treaty terms).

2. Domestic TRC

• Purpose: For local tax compliance (not valid for international tax relief).
• Used For:
• Proof of tax residency for UAE banks, financial institutions, or local authorities.
• Citizens of countries without a UAE DTAA.
• Residency Requirement: Minimum 90 days in the UAE.

Who Can Apply for a TRC?
Eligible Applicants

• Companies: Registered in the UAE for at least 1 year (excluding offshore entities).
• Individuals:
• UAE residents meeting the 183-day rule (Treaty TRC) or 90-day rule (Domestic TRC).
• UAE nationals (for certain DTAA countries).

Double Taxation Avoidance Agreement (DTAA)

• The UAE has DTAAs with 110+ countries to:
• Eliminate double taxation on individuals and businesses.
• Encourage foreign investments and cross-border trade.
• Provide clarity on tax obligations in both jurisdictions.

Key Conditions:

• No TRCs for future periods – only current/past tax residency can be certified.
• Offshore companies are ineligible (not covered by DTAAs).
• DTAA requirement: TRCs are issued only for countries with active UAE tax treaties.
• Format compliance: Some countries require FTA-approved TRC templates.

Processing Time
The FTA typically processes TRC applications within 7–10 business days upon submission of all required documents.