The Federal Tax Authority (FTA) has announced a major update to the fee payment process for UAE Tax Residency Certificate (TRC) applications, effective 3 October 2025. While the TRC fee itself has not changed, the payment mechanism and financial responsibility have shifted entirely to the applicant—making documentation accuracy and eligibility more important than ever.
As an FTA-Approved Corporate Tax Agent, The Accountant LLC provides a detailed breakdown of the changes, requirements, and compliance steps you must follow to avoid rejection and ensure a smooth TRC process.
1. What is a UAE Tax Residency Certificate (TRC)?
A Tax Residency Certificate is an official document issued by the UAE FTA confirming an individual’s or company’s tax residency status in the UAE.
It enables applicants to benefit from the UAE’s extensive Double Taxation Avoidance Agreements (DTAAs) with other countries—reducing or eliminating foreign tax on income, dividends, royalties, and capital gains.
Businesses use it for cross-border tax planning, while individuals use it to avoid dual taxation and prove UAE residency to international tax authorities.
2. What Changed in 2025? – Updated TRC Fee Payment Rules
Old Process (Before 3 Oct 2025):
AED 50 submission fee paid first
Full TRC fee paid only after FTA’s preliminary approval
Lower upfront risk
New Process (Effective 3 Oct 2025):
Full TRC fee must be paid upfront at the time of submission
If the application is rejected, no refund is provided
Applications submitted before 3 Oct 2025 are not affected
Why This Matters
The financial risk now shifts to the applicant. With no refund available after rejection, ensuring complete eligibility and flawless documentation is essential.
3. Eligibility Criteria for TRC in the UAE
For Individuals
To qualify for a TRC as an individual, you must meet the following criteria:
Minimum 183 days physical presence in the UAE (or satisfy alternative residency tests)
Valid Emirates ID and UAE residency visa
UAE address and accommodation proof (Ejari/tenancy contract)
Evidence of income or employment in the UAE
UAE bank statements for the relevant period
For Companies
A company must satisfy:
Minimum 1 year of active operations in the UAE
Valid trade license (mainland or free zone)
Physical office lease agreement
Corporate bank statements
Audited or management financial statements
Active business activities consistent with the TRC period
4. Required Documents for TRC (2025 Updated Checklist)
Individuals
Passport copy + Visa page
Emirates ID
12-month UAE bank statements
Residential tenancy contract
Income proof (salary certificate, employment contract, or business license)
Immigration travel report
Companies
Trade license
Memorandum of Association (MOA)
Lease agreement
Latest audited/management financials
Corporate bank statements
Company profile/business activities summary
Passport + visa pages for owners and authorized signatories
Accurate and consistent documents are crucial—any mismatch may lead to rejection without refund.
5. Step-by-Step TRC Application Process (Updated for 2025)
Register or login to the FTA portal
Choose Tax Residency Certificate under “Certificates”
Select individual or corporate application
Upload all required documents
Pay full TRC fees upfront at the submission stage
FTA reviews and verifies documents
Approved TRC is issued
If required, DTAA form is stamped by the FTA
Important:
Applicants must select “Yes” for “Do you need any special form to be signed?” if submitting a DTAA form.
6. DTAA Requirements and Stamping
Many countries require a Double Tax Treaty form to be stamped along with the TRC.
Key points:
The form must relate to the same 12-month period as the TRC
The form must be in English or Arabic (otherwise legally translated)
The original document must be submitted to the FTA
Stamping fees are included in the TRC fee
7. Common Reasons for TRC Rejection
Under the new non-refundable fee policy, avoiding mistakes is critical.
The most common rejection reasons include:
Insufficient residency proof
Incomplete documentation
Not meeting the 1-year establishment rule (for companies)
Missing financial statements
Lack of economic substance
Mismatch between passport/visa dates and residency period
Applicants should ensure all documentation is complete before applying.
8. TRC Processing Time & Validity
Normal processing time: 5–15 working days
Validity: Typically covers a 1-year period
TRC can be used to claim treaty benefits for the specified period
9. How The Accountant LLC Supports TRC Applications
As an FTA-Approved Corporate Tax Agent, The Accountant LLC assists individuals and companies with:
✔ Checking TRC eligibility
✔ Preparing all supporting documents
✔ Application submission through the FTA portal
✔ DTAA form preparation and stamping
✔ Ensuring full compliance with UAE and international tax rules
✔ Preventing rejections under the new non-refundable fee regime
With our extensive experience in UAE corporate tax and international taxation, we ensure that your TRC application is processed correctly the first time.
Final Takeaway
From 3 October 2025, all TRC applicants must pay the full application fee upfront, with no refunds for rejected submissions.
This makes professional review, eligibility assessment, and accurate documentation more critical than ever.
For compliant and error-free TRC applications, The Accountant LLC offers expert guidance backed by regulatory authority and UAE tax expertise.
