What Is a TRC and Why Does It Matter?
A
Tax Residency Certificate (TRC) is a document that certifies you as a tax resident in the UAE and is issued by the UAE Federal Tax Authority. With it, you can enjoy benefits under the
Double Taxation Avoidance Agreements (DTAA) with over 135 countries.
In simple terms, if two countries wish to slice your income, the TRC serves as the documentation needed to tell one of them to take a seat at the table.
Why Is the TRC Important for Individuals?
1. Avoid Double Taxation
If you’re living in the UAE, earning an income elsewhere, you might face tax bills in both places. The TRC gives you authority under DTAA to claim the right to an exemption or reduced tax rate, so that you can put your money back in your pocket.
2. Establish the UAE as Your Tax Home
For global professionals, digital nomads, and Non-Resident Indians, the TRC acts like a “residency badge” that proves your tax home is the UAE. This is vital if you want to:
- Avoid residency-based taxation in your home country
- Prove tax domicile to banks or foreign authorities
- Simplify compliance for investments and overseas accounts
3. Ensure International Compliance
Whether you are investing abroad or transferring funds, many institutions require proof of tax residency. The TRC meets those requirements and helps you stay compliant with rules like CRS and FATCA.
Who Can Apply?
Generally, to receive a TRC as an individual, you must be able to meet ALL of the following requirements:
- You have lived in the UAE for 183 days or more in the relevant year.
- You have a resident visa from the UAE.
- You have a rented or owned place of residence in the UAE.
- You can show some sort of relationship, such as employment, business, or investments.
Tourists and short-term visitors aren’t eligible—this isn’t a souvenir you pick up at the airport.
Documents You’ll Need
- Passport and Emirates ID copies
- Valid UAE residence visa
- Immigration entry/exit report
- Tenancy contract or property deed
- Salary certificate or UAE bank statements
- Completed TRC application form
Tip: Many expats rely on experienced
Visa Consultants in India to guide them through eligibility rules and document preparation before applying.
Conclusion
A TRC is more than just paperwork. It serves as a guard against double taxation, provides proof of your tax home in the UAE, and facilitates better flows of global finance. If you think you need assistance navigating the requirements for applying for a TRC,
Tourist Visa Consultants in Delhi, such as
Abhinav Immigration Services, can help you put together a well-prepared application.
We have many years of experience assisting individuals in obtaining visas and residency-related documents, and we can ensure that each person receives personal attention to detail.
When it comes to taxes, it’s not about not getting a bill; it’s about making sure you only get the right one!