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UAE Tax Residency Certificate: Eligibility and How It Helps in India

If you live in the UAE and earn interest, dividends or other income in India, a UAE Tax Residency Certificate (TRC) is often the document that lets you pay less tax in India under the India–UAE tax treaty. Without it, Indian banks and payers must deduct TDS at full domestic rates. Here is how to get one and how to use it.

Who issues it?

The TRC is issued by the UAE Federal Tax Authority (FTA) through its online portal, EmaraTax. It confirms that you, or your company, are tax-resident in the UAE for a stated period.

Eligibility for individuals

Under Cabinet Decision No. 85 of 2022, an individual is UAE tax-resident if they meet any one of these tests:

  1. 183-day test: physically present in the UAE for 183 days or more in a 12-month period (the days do not need to be consecutive), or
  2. 90-day test: physically present for 90 days or more in a 12-month period and:
    • is a UAE or GCC national, or holds a valid UAE residence permit, and
    • has a permanent place of residence in the UAE or is employed or runs a business in the UAE, or
  3. Centre of interests test: the person’s usual or primary place of residence and centre of financial and personal interests is in the UAE.

Companies incorporated in the UAE are generally tax-resident and can also apply for a TRC.

Documents usually needed (individuals)

  • Passport, UAE residence visa and Emirates ID
  • Entry and exit report showing days in the UAE (from the immigration authority)
  • Proof of address, such as a tenancy contract (Ejari) or title deed
  • Salary certificate or employment contract, or a trade licence if self-employed
  • Bank statements (often for 6 months)
  • Proof of source of income, depending on the application

Process

  1. Create or log in to your EmaraTax account.
  2. Choose Tax Residency Certificate, the type (individual or company) and the period you need. It should cover the Indian tax year you are claiming for.
  3. Upload the documents and pay the fees. These are made up of an application fee and an issuance fee. The amounts depend on whether you are an individual or a company and whether you hold a tax registration number. Check the current fees on the FTA website.
  4. The FTA reviews the application and may ask questions.
  5. Download the electronic certificate. Hard copies cost extra.

Using your UAE TRC in India

  1. Give the TRC to the Indian payer (your bank for NRO interest, the company or fund house for dividends) before the income is paid.
  2. File Form 41 (formerly Form 10F) on the Indian income tax e-filing portal, with your tax identification and address details. Many payers ask for this even where the TRC already includes some of the details.
  3. Add a self-declaration that you have no Permanent Establishment in India and that you are the beneficial owner of the income.
  4. The payer can then deduct TDS at the India–UAE treaty rate, for example:
    • Interest: up to 12.5% (5% on loans from banks or financial institutions), instead of about 31.2% on NRO interest
    • Dividends: up to 10%, instead of 20% plus surcharge and cess
    • Royalties: up to 10%
  5. If tax was already deducted at the higher rate, claim the treaty rate in your Indian ITR and get the difference back as a refund.

Points to keep in mind

  • Get a new TRC for each period. Each certificate covers a specific 12-month period.
  • Indian tax officers can check whether you are really resident in the UAE. Keep your travel and residence records.
  • A TRC does not change your Indian residential status. If you spend 182 days or more in India, you are an Indian resident whatever the TRC says. Where both countries treat you as resident, the treaty’s tie-breaker rules decide.
  • Capital gains on Indian property remain taxable in India under the treaty. A TRC does not reduce TDS on a property sale.

Frequently asked questions

How long does a UAE TRC take?
Processing usually takes a few working days to a couple of weeks once the documents are complete. It can take longer if the FTA has questions.

I moved to the UAE four months ago. Can I get a TRC?
Possibly, under the 90-day test, if you have a residence visa and either a permanent home or a job in the UAE.

Do I need a TRC if all my income is in the UAE?
Not for Indian purposes. It is mainly useful when you earn income in India (or another treaty country) and want to claim treaty benefits.

Is a TRC the same as a residence visa?
No. A residence visa lets you live in the UAE. A TRC is a tax certificate confirming you are tax-resident there.

Earning income in India while living abroad? Garvita Jain & Co. helps with Form 41 filing, treaty-rate claims with Indian banks and payers, and refund claims through your ITR. Contact us here, or at contact@garvitajainandco.com or +91 98678 16597.

This article is general information based on the law as of October 2026 and is not professional advice.

Sources

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