Objectives & Agenda : The presentation shall dwell upon the importance of Double taxation avoidance agreement and purpose of tax residency certificate (TRC). The event would also throw light on what is TRC, benefits of TRC, eligibility of obtaining of TRC, requisite documents and procedures for obtaining the same. Last but not the least, webinar would emphazise the importance of limitation of benefit clause in DTAA.

1. Obtaining Tax residency certificate in
Dubai
Dr. CA. Nabeel Ahmed B.com, ACA, CMA, AICWA, AIA, MBA, Ph.D
DVS Advisors LLP
India-Singapore-London-Dubai-Malaysia-Africa
www.dvsca.com

2. Presentation Schema
DTAA
Purpose of tax
residency
certificate
What is TRC
Benefits of
obtaining TRC
Eligibility to
obtain TRC
Requirements
and paperwork
Procedures Duration

3. Double taxation avoidance agreements (DTAA)
UAE has entered into 115 DTAA with most of its trade partners
It includes agreements with countries like India, Singapore, China, New Zealand, Germany,
Australia etc.
This removes the imposition of similar taxes by two countries on the same tax payer on the same
tax base.
DTAA are tax treaty with 2 or more countries to avoid taxing the same income.

4. Purpose of Tax residency certificate
Source of
income lies
where the
services are
performed or
assets are
located.
Hence source
country has
the right to
tax
Resident
country has
the right to
tax global
income in
and
outside
India of a
resident.
Then
income
may be
taxed both
in source
and
resident
country
To avoid
Double
taxation,
relief may
be claimed
under
DTAA
To claim
relief under
DTAA, TRC
is required
from
resident
country
authorities

5. What is tax residency certificate
A certificate issued for eligible government entities, companies and
individuals to take advantage of DTAA on income signed by the UAE
Issues by Ministry of Finance,
To companies registered in UAE and individuals residing in UAE.
Validity
The Tax residency certificate is valid from 1 year from the date of its
issue.

6. Benefits of obtaining TRC
Utilization of benefits in
DTAA
Reduces working capital
shortage
Prevents unnecessary
litigations and
procedures
Facilitates exchange of
information
Strengthens trade
relationship
Fosters international
trade

7. Who is eligible to obtain TRC
Companies
operating in
Dubai mainland
Any Free zone
Company
An employed
individual
Eligible
• Branch of a foreign company
• Offshore company
• An non employed individual
(with a spouse visa)
Ineligible

8. Requirements and paperwork
• E-mail ID
• Mobile number
• Resident in that state
(>=183 days)
• Registration in the system
Basic Requirements Documents required
Individuals :
• Passport copy, Valid residence copy
• Certified tenancy contract/ Title deed,
Certified bank statement for at least 6
months, Immigration report of residency.
Corporates :
• All Corporate Documents , 6 Months
bank statement , Audited financial
statement, Lease contract for
premises
Fees
• For issue of certificate
Individuals : AED 3,000
Corporates : AED 10,000

9. Procedures
Create a new
account in MOF
website and apply
through MOF
website
Receipt of certificate
through e-mail
Review of submitted
documents by
department
Payment of
certificate’s fees
41
2 3

10. Duration
The expected duration during processing:
3 working days after getting the approval.
The expected duration for getting the
result:
The customer will receive the certificate
through email once the payment operation
finished.

11. Sample TRC

12. Limitation of benefits clause
This provision limits
the benefits of
favorable tax
treaties
To prevent abuse of
treaty benefits and
treaty shopping,
anti abusive
provisions were
introduced.
With introduction
of DTAAs,
companies to
reduce/evade tax
liability started
exploiting tax
treaties.
Obtaining TRC alone would not
allow a person to claim benefits of
DTAA.

13. Cond
UAE- India UAE- Singapore
As per article 29,
• If the main purpose for creation of an
entity is to obtain the benefits of
treaty,
• then the benefits of the treaty will not
be available.
• As per article 22, if an income is
exempt or subject to reduced tax in
UAE as per the tax treaty and
• The same income is subject to tax in
Singapore.
• Then benefit under this treaty in UAE
shall be allowed only to the extent it is
received in Singapore.
Limitation of benefit clause in some of the DTAA entered by UAE

14. Contd
Mr. A
(Teacher)/
Resident of
Singapore
University (UAE)
Visits
Solely for the
purpose of teaching
in an university for 4
months
Remuneration (taxable
in Singapore)
As per article 19 of
Singapore and UAE,
remuneration received
from such teaching
shall be exempt in UAE
However as per article
22, remuneration shall
be exempt only when
it remitted to
Singapore.

15. Credits and Acknowledgement
Viswanath D

16. Thank You
DVS Advisors LLP
India-Singapore-London-Dubai-Malaysia-Africa
www.dvsca.com
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