Understanding the difference between Domestic and Treaty Tax Residency Certificates (TRC) in the UAE is important for expats and businesses. Each type serves a different purpose and is required in different situations.

Two types of TRC: Domestic and Treaty

Domestic TRC is issued under UAE domestic law and confirms that you are a tax resident of the UAE for local purposes. It is helpful for:

  • Banking and financial institutions in the UAE
  • Local regulatory or licensing requirements
  • Demonstrating UAE tax residency within the UAE
  • General administrative and commercial purposes in the country

Treaty TRC is the certificate you need when dealing with another country’s tax authority. You typically need it if you are:

  • Submitting a tax declaration in your home country
  • Reporting income or claiming benefits in any third country where you hold a Tax Identification Number (TIN)
  • Earning or declaring income in another jurisdiction and need to prove UAE tax residency under a double tax treaty

In short: use Domestic TRC for UAE-side use; use Treaty TRC when you have tax obligations or declarations in another country and need to rely on a tax treaty.

When do you need a Treaty TRC?

You need a Treaty tax residency certificate when:

  • Your home country (or another country) asks for proof of UAE tax residency to avoid double taxation or to apply treaty benefits
  • You have a TIN in another country and are declaring income there
  • You are claiming relief or credit for tax paid (or residency) in the UAE under a double tax agreement

Applying for the correct type of TRC and keeping your supporting documents (e.g. proof of residence, presence in the UAE) in order helps you stay compliant in the UAE and in other jurisdictions where you have tax obligations.