What is a Tax Residency Certificate (TRC)?
A Tax Residency Certificate (TRC) helps you avoid or reduce double taxation on income and assets, both in the UAE and other countries. Overseeing the taxation process in the UAE, the FTA gives out the Tax Residency Certificate (TRC) to validate your residency status for tax to get an advantage with Double Tax Treaties (DTTs). These agreements mean you can enjoy lower tax rates or exemptions, helping you save money and improve international business relations.
Who Can Get a Tax Residency Certificate?
Both businesses and individuals can apply for a TRC.
- For businesses, if you’ve been operating in the UAE for at least one year—whether in the Mainland or Free Zone—you can apply for a Tax Residency Certificate.
- For individuals, if you’ve lived in the UAE for more than 183 days, or have a valid UAE visa for at least six months, you may also qualify for a Tax Residency Certificate. You could still appeal to the Department of Internal Revenue and make use of the tax residency certificate so as not to be subjected to double taxation even if there is no implemented double tax treaty with the home country.
Main advantages of obtaining a Tax Residency Certificate
Having a Tax Residency Certificate opens up a range of benefits:
- Reduced Tax Rates:- To avail of the benefits of tax treaties reduce tax on dividends, interest, capital gains, and royalties.
- Proof of Tax Residency: Offers a legal confirmation of one’s tax status, beneficial in scope of international transactions.
- Boost International Trade: The remedy facilitates cross-border business by trying to ensure that all tax related issues are met and well spelled out.
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Avoid Double Taxation: Avoid once placing taxes on the same income received from another country source.
The steps to obtaining of Tax Residency Certificate:-
With FarhatCo.net, thus, the process of applying for a Tax Residency Certificate is very easy. Here’s how it works:-
- Create an Account: Creating an FTA account via our website in order to register your organization on the FTA website.
- Submit Your Application: Continue with the online application, attach relevant documents (trade licenses, copies of passports etc) and go through the laid-down procedure.
- Approval and Payment: After your documents have been scrutinized and are okay to the FTA standards you will be notified. You can then make the payment online if you wish to make the payment for the particular flight.
- Receive Your Certificate: Once processed, they shall be forwarded to the recipient via an express courier service.
Documents You’ll Need For Tax Residency Certificate
The type of documents which may be required depends on whether you are applying in your own personal capacity or on behalf of a business entity. We help ensure you have everything in order:
For Businesses:
- Valid trade license.
- Memorandum of Association (MOA).
- Commercial tenancy contract.
- Bachelor’s degree in any respected field Recent financial/bank statements.
- Copy of passport and Emirates ID of shareholders/ directors.
For Individuals:
- Passport and Emirates ID.
- Valid means of identification of the residential area or domicile (tenancy agreement or land title deed).
- Bank account information and documents such as the balance statement and cheque book.
- Other income documents as would be required, in cases where they are.
What is a Commercial Activities Certificate (CAC)?
A Commercial Activities Certificate (CAC) is granted to companies operating in the UAE which requires recognition of the company’s commercial status for taxation. It proves your company exists and is usually required in order to obtain certain tax advantages of doing business.
Why Do You Need a Commercial Activities Certificate?
The CAC is essential for:
- Proving Business Activity: Proves that you are still in business in the UAE.
- Accessing Tax Benefits:- Similar to the TRC, the CAC enables the businesses to take advantage of the various double taxation treaties of the UAE.
- Staying Compliant:- Make sure that your business complies with the laws on taxes of the United Arab Emirates and will shield it from getting penalties or fines.
How to Apply a CAC (Commercial Activities Certificate)?
Following steps for obtaining the commercial activities certificate are required to follow:-
The process is same like 0 to the TRC application:
- Prepare Your Documents: Please ensure that you update your trade license, tenancy agreement and other documents required by the business.
- Submit Online: They use this application through the FTA website with the help of FarhatCo. Net.
- Approval and Issuance: When all the required documents have been verified, CAC will be issued and forwarded to you.
Why Choose FAR Consulting Middle East
At FAR Consulting Middle East, we ensure that acquiring Tax Residency Certificates and Commercial Activities Certificates is as easy as could be. Here’s why you should trust us:
- Expert Guidance: We guide the client step by step until you have filled the application correctly and in the most accurate manner.
- Easy Process: That means we embrace the role of helping you check all the necessary documents, submit them, and obtain final approval.
- Full Support: No matter if you are applying personally or for your company, you can be sure that all your needs in the tax area will be processed professionally and strictly.
Contact Us Today!
Are you ready to apply for a Tax Residency Certificate or Commercial Activities Certificate? Reach out to FarhatCo.net, we will guide you step by step with the application to certificate, let FAR Consulting Middle East to help you complete your application on the stumble net quickly and hassle free.