Ministerial Decision No. 247 of 2023 On Issuance of Tax Residency Certificate for the Purposes of International Agreements 

The UAE Ministry of Finance has published ministerial decision no. 247 of 16 October 2023 on the issuance of tax residency certificates for international agreements with people. The decision of the ministry is present in the following: 

1. For Article 6 international agreements for cabinet decision no. 85 of 2022, a person who meets the conditions of tax residency in UAE under the relevant international agreement that will make an application for authority that will help obtain a tax residency certificate for purposes that come with the international agreement. 

2. The application that is referred to the previous point shall be submitted in a form and in is manner that is specified by authority and it shall include necessary information for the authority of the government to issue the tax residency certificate. 

3. If the authority is satisfied that the applicant will meet the conditions for tax residency for UAE by provisions for the relevant international agreement. The authority that will approve in the application and then issue a tax residency certificate for the form attached in the decisions or in any other form for accepting to authority for the tax. 

The Minister of State for Financial Affairs has decided the following:  

Complete review of the constitution 

Federal law no. 1 of 1972 on the competencies of ministries and their powers, and its amendments 

Federal decree law no. 28 of 2022 on tax procedures 

Federal decree law no. 13 of 2016 on the establishment of federal tax authority and amendment 

Federal decree-law no. 47 of 2022 on taxation of corporations and businesses 

Cabinet decision no 85 of 2022 on the determination of tax residency 

Ministerial decision no. 27 of 2023 on implementation of certain provisions of cabinet decisions no. 85 of 2022 on determination of tax residency. 

More about the decisions 

In Clause 2 of article 6 of cabinet decision no. 85 of 2022 that is present in the determination of tax residency for providing that separate decision that will be issued by the minister specifying the form and in the manner for issuing certificates for determining the tax residency for purposes of international agreement. The decision further defines the international agreement as a bilateral or multilateral agreement or any other agreement to which the UAE is a party. It also defines that TRC means a certificate that is issued by the FTA proving that the person is a tax resident in the state.  

As per the relation, the ministerial decision that is issued that provides a person that meets the conditions of tax residency that should be UAE under relevant international Agreement may make an application for FTA to obtain in a TRC for the purpose that with international agreement. The application that approved by FTA with satisfaction for conditions for tax residency in UAE by provisions for relevant international agreement. The TRC will be issued formally specified in ministerial decisions in any other form acceptable to FTA. In the purpose that with ministerial decisions, the person shall mean a juridical person which means the legal entities incorporated, formed, and recognized by the legislation in force with UAE as with the natural person.  

The individual has their usual and primary place for residence and the centre that the financial and personal interest in UAE for physically present in UAE and having specified time. The global tax practice that obtaining TRC from the revenue department authorities by taxable persons intending to avail the benefits with international agreements. TRC will become a crucial document for obtaining from FTA before any benefits that are availed by taxable persons under the international agreements that will include double taxation avoidance agreements between UAE and different countries.