Domestic Tax Residency Certificate in the UAE for Individuals

Get a Domestic Tax Residency Certificate in the UAE

A tax residency certificate for domestic taxation within the UAE has the principal function of verifying an individual's tax status and liability within the UAE. The Federal Tax Authority (FTA) issues these certificates to natural persons to determine tax residency for domestic tax laws and incentives.

The document certifying tax residence for UAE local tax obligations confirms an individual's status, which is determined based on the number of days present in the UAE within a given financial year. It enables individuals to take advantage of domestic tax allowances and exclusions to which they are entitled as tax residents of the UAE by law. The certificates are also recognised by domestic tax authorities as proof of tax residency to certify tax obligations of residents.

Tax residency certificate for domestic taxation

Any natural person is entitled to apply for a Tax Residency Certificate Domestic UAE from the FTA if they have spent at least one of the following durations in the UAE for the applied fiscal year:
 

The financial year of application should be in the past, and he/she should have supporting documentation to validate his/her residence and citizenship within the UAE as per the FTA definition.

Required Documents for Tax Residency Confirmation for Local Tax Burden

The type of documents to be utilised in seeking a tax residency certificate for local use within the UAE depends on the length of stay within the country as follows:

For Natural Persons

* Stayed within the UAE for 183 days or longer:

• Passport
• Emirates ID 
• Entry and exit report

* Stayed within the UAE for less than 183 days but more than 90 days:

• Passport
• Emirates ID 
• Entry and exit report
• Source of income/salary certificate
• OR Document of permanent residence, such as a title deed, utility bills, and a rental agreement

* Spent less than 90 days or have other circumstances:

• Passport
• Emirates ID (if available)
• Entry and exit report
• Evidence of financial and personal interests in the UAE
• OR Document of permanent residence, such as a title deed, utility bills, and a rental agreement

Applicants need to submit all documents of abiding with respect to their stay duration in order to be granted a tax residency certificate for local use in the UAE.

Conclusion

Concluding everything, the FTA approval of the Tax Residency Certificate Domestic UAE is a confirmation of the status of residency of the individual in the UAE. It assists the residents and the authorities in reporting the domestic tax liabilities in the UAE correctly, and further offers domestic tax relief to the UAE tax residents in the form of subsidies and exemptions offered only to the residents of the UAE. 

For more detailed steps on how to change your tax residency, connect with our advisors at the number mentioned below.

FAQs

Q1. What is a domestic tax residency certificate, and how is it utilised in the UAE?

A domestic tax residency certificate of the UAE is proof of tax residence status of an individual in the UAE, utilised solely for local taxation. It is utilised to ascertain the tax filing obligation of the citizens and their rights to tax exemptions.

Q2.  Who can apply for a tax residency certificate to pay domestic taxation in the UAE?

Any person who meets any of the b

a) Individuals who have stayed in the UAE for more than 183 days.

b) Those who have stayed in the UAE for more than 90 days and less than 183 days may present proof of business income within the UAE or proof of long-term residency, like a title deed, utility bills or a long-term rental agreement.

c) Individuals who have been within the UAE for 90 days or less but can provide proof of financial and personal interests within the UAE, like

Below conditions can apply for a tax residency certificate to pay domestic taxation in the UAE:

place of work, family connections, property owned, etc.

Q3. What documents are required for of tax residency certificate to be issued for domestic tax purposes?

Documents like a passport, Emirates ID, entry/exit dates and residence evidence like utility bills or rental agreement.

Q4. How does having a tax residency certificate impact one's tax obligations and tax benefits in the UAE?

It establishes them as tax residents in the UAE, which makes them qualify for exemptions and establishes tax filing obligations.

Q5. Are tax residency certificates issued by the UAE accepted for domestic taxation purposes by local governments?

Yes, FTA certificates are recognised by local authorities as proof of tax residency.

Q6. How is a domestic taxation tax residency certificate in the UAE renewed or updated?

No, every year, the application for the domestic TRC is required to be submitted

To learn more about Domestic Tax Residency Certificate in the UAE for Individuals, book a free consultation with one of the Flyingcolour team advisors.

Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.