NRIs living abroad might have income from both India and their country of residence. The incomes earned are liable to be taxed in both the countries from where the income is generated and the NRI's country of residence.
To avoid this double taxation, countries sign the double taxation avoidance agreement (DTAA) to prevent double taxation of residents. The tax residency certificate (TRC) is a crucial document that helps NRIs to claim the benefits of DTAA.
In this blog, we will look into the process of obtaining TRC in the UAE and the conditions attached to it.
What is a Tax Residency Certificate (TRC)?
A Tax Residency Certificate (TRC) is an official document that confirms the residency status of an individual or legal entity within the UAE for tax purposes.
This certificate serves as a key instrument to leverage the benefits under a Double Taxation Avoidance Agreement (DTAA), ensuring that income already taxed - or liable to be taxed- in another jurisdiction is not taxed again in the UAE. This helps to avoid double taxation for the UAE residents.
Any individual or business wanting to claim the benefits of the DTAA should obtain a TRC from the Federal Tax Authority of the UAE.
The TRC is valid for one calendar year, i.e., from January to December.
Who Needs a TRC in UAE?
As it’s an important legal document, all individuals and corporate entities residing/having operations on a long-term basis in UAE can avail of a Tax Residency Certificate. In doing so, these individuals/entities get to benefit from the various advantages relating to taxation and compliance offered by the TRC. However, it is important to note that one must meet the eligibility criteria set by the Federal Tax Authority (FTA) to avail of a Tax Residency Certificate.
The primary advantage of this lies in being able to avoid double taxation on income generated across multiple countries under the DTAA agreement. Other tax advantages include reduced tax rates, tax reliefs, and tax exemptions available for certain types of income. Other than this, TRC complies with international tax laws and confirms the tax residency of the individual within the UAE.
Discover India-UAE DTAA for NRIs and how to reduce your tax liability.
Eligibility Criteria for TRC in the UAE For Individuals
To obtain a TRC in the UAE, individuals must:
Primarily reside in the UAE
Be present in the UAE for at least 183 days in a calendar year
Documents Required for TRC Application
The documents required for getting a TRC are:
Passport copy
UAE residence visa
Emirates ID
Proof of residence (Ejari/utility bills)
Immigration report (to verify UAE stay)
Latest salary certificate
UAE bank statements (last 6 months)
How to Apply for a TRC in the UAE & Processing Time
You can apply for a Tax Residency Certificate online or via a licensed tax advisor. The application process typically takes 4-5 days and will carry a validity of 1 year starting from the date of issuance (Federal Tax Authority, 2025). Additionally, if you request a hard copy of the certificate, it will take another 5 days from the date of request.
Cost of TRC Application
The cost of the application for the TRC is approximately ~1200 AED. This is upwards of Rs. 25000.
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Steps to Obtain the Tax Residency Certificate
If applying online, you can follow the guide below for an easy and streamlined application process:
Step 1: Register on the Portal
Visit the FTA (Federal Tax Authority) website and create a tax certificate account by clicking on “Create new account”. Fill in all the information on the login page to create an account. The details include name, email address, user name, country code, PO box, address, and password, followed by a security code.
Step 2: Complete Application
Log in with the user ID and password and click on “Create Tax Residency Certificate” from the dashboard. If you are already a “Registered Taxpayer” in eServices, click on “Yes”. Else, click on “No” to proceed.
If you click on “Yes”, you need to provide the TRN number and the registered email ID in eServices for the verification of the eServices account. Upon verification, you are navigated to the page for application of a Tax Residency Certificate. Details are auto-filled as per the selected TRN.
If you click on “No”, you are required to fill out the online Tax Residency Certificate application form.
It is important to select the type of certificate (for a natural person/legal person) and the start date of the financial year before filling in the application form.
Verify all the details filled out in the application and read the terms and conditions before submission. You can click on “Submit” if you have the documents handy for upload, or click on “Save as draft” for later use.
Step 3: Upload the Documents
Attach and upload all the required documents as per the list. Go through the list of documents mentioned on the FTA (Federal Tax Authority) website and keep them scanned beforehand for quick completion of the application process.
Step 4: Make a Payment
The Tax Residency Certificate request application can be submitted for approval after paying the application submission fee displayed on the page. As you click on “Pay”, you are directed to a payment gateway (eDhiram) for submission of the fee payment.
Step 5: Application Submission
Submit the application for a Tax Residency Certificate and wait for approval from the FTA.
Step 6: Application Review
Upon verification of the application, FTA gives approval for the issuance of the Tax Residency Certificate. If any additional information or documents are required, the FTA will contact you before giving approval.
Step 7: Issuance of Tax Residency Certificate
A tax residency certificate will be issued within five business days of the submission of an application and fee payment.
Importance of Tax Residency Certificate
While it may initially seem daunting to register and avail of a Tax Residency Certificate while being in the UAE. It is necessary to claim the DTAA benefits. One of the important points to note here is that TRC costs about ~1200 AED. Individuals with TDS deductions greater than Rs. 25,000 will find it more useful than others who have lower than this.
Use the Belong Residential Status Calculator to know whether you are a resident, NRI, ROR, or RNOR.
