Tax Residency Advisory

The legal and physical basis on which tax is calculated in accordance with a state’s tax regulations is referred to as tax residency. Tax residency, however, pertains more to international cross-border issues than to GCC internal tax rules; especially, it relates to the legally avoided double taxation in two nations under international Double Tax Avoidance Agreement (DTAA) treaties. This is a significant area of concern, particularly for multinational corporations with operations spread across numerous tax jurisdictions. These businesses may benefit from the appropriate DTAAs that the relevant GCC nations have with other nations. Both individuals and businesses must be tax residents.

A Tax Residency Certificate establishes residency legally (TRC). The Tax Residence Certificate (TRC) is an official certificate or document issued by a country’s tax authority to tax resident entities and persons who meet the required residency requirements as prescribed by the country’s domestic income tax laws. It is a requirement for claiming any benefits of lower or no taxation in the source or residence nation in relation to the DTAA to have a TRC, or Tax Domicile Certificate as it is known in some countries, such as the UAE.

Tax residency is highly crucial to both people and businesses, but it necessitates in-depth understanding of the intricate DTAA tax treaty regulations. Our tax specialists in the UAE, KSA, and GCC at Bestfolio have a wealth of knowledge administering DTAAs and TRC. We help you get your TRC, give you advice on the pertinent laws, and lead you step-by-step through the procedure.

• Advice on Residency implications for individuals under UAE, and GCC Income Tax laws and its interplay with the applicable DTAAs
• Advice on Residency implications for entities under GCC Income Tax laws and its interplay with the applicable DTAAs
• Review of documents required for Tax Residency Certificate (TRC)
• Assistance in filing application with the respective tax department for TRC
• Responding to queries, if any, raised by the tax department
• Assistance in obtaining TRC from the tax department