A Practical Guide to Getting a Tax Residency Certificate (TRC) from the UAE

If you are an NRI living in the UAE and planning to claim exemption from capital gains tax on mutual funds in India, this guide is for you. Under the India–UAE Double Tax Avoidance Agreement (DTAA), capital gains from the sale of Indian mutual funds by a UAE resident are taxable only in the UAE—which currently levies no personal income tax.

However, to avail this exemption under Indian tax laws, you must submit a Tax Residency Certificate (TRC) issued by the UAE Ministry of Finance. Below is a practical guide explaining the full process, documentation, eligibility period, and how it ties into your Indian tax filing.

India’s tax authorities require proof that you are a resident of the UAE during the period in which the capital gains were earned. The TRC serves as this proof. Without it, you will not be able to claim benefits under the DTAA, and the capital gains may be taxed in India.

If you are claiming exemption on capital gains earned between 1 April 2024 and 31 March 2025 (the Indian financial year), you must obtain a TRC covering the UAE calendar year 2024 (January to December 2024).

Even though India’s financial year follows an April–March cycle, the Indian Income Tax Department accepts TRC based on the calendar year of the country of residence, in this case, the UAE.

Step 1: Register on the UAE Ministry of Finance Portal

● Visit the UAE Ministry of Finance website: https://www.mof.gov.ae
● Use your UAE Pass to log in
● Select “Individual” as the applicant category

Note: The TRC application process is now fully digital and integrated with UAE Pass for identity authentication.

Step 2: Create a New TRC Request

● Once logged in, choose “New Request”
● Select “Tax Residency Certificate”
● Choose the relevant calendar year (2024)
● Mention the purpose: To claim tax treaty benefit under DTAA with India

Step 3: Prepare and Upload Required Documents

The following documents are typically required:
● Valid Emirates ID
● UAE residence visa (should be valid for at least six months during the year)
● Passport copy
● UAE tenancy contract or title deed (Ejari in case of Dubai)
● UAE bank statement for the past six months
● Salary certificate (if employed) or self-declaration of income (if self-employed)
● Entry and exit report issued by ICP or GDRFA (to establish UAE residency)
● Proof of income (such as salary slips or income declaration)

Make sure documents are clearly scanned and preferably in PDF format.

Step 4: Pay the Fees and Submit

● Government Fees: AED 50 (application) and AED 500 (certificate issuance), subject to revision
● Payment is made online through the Ministry of Finance portal
● After payment, submit the application for review

Step 5: Certificate Issuance

● The Ministry typically processes applications within 4 to 7 working days
● You will receive an email or SMS notification upon approval
● You can download the TRC directly from the portal

Document / Requirement

● Emirates ID
● UAE Residence Visa
● Passport Copy
● Tenancy Contract/Ejari
● 6-Month UAE Bank Statement
● Salary Certificate or Income Declaration
● Entry/Exit Record from ICP or GDRFA
● UAE Pass Registration
● Government Fee Paid

Once you have received the TRC, the following steps are needed in India to claim DTAA benefit:

1. Submit Form 10F on the income tax portal
2. Upload the TRC (PDF format) under “e-Proceedings”
3. Provide a self-declaration letter confirming that you do not have a permanent establishment in India
4. Share these documents with your mutual fund company or registrar (like CAMS/KFintech)
5. At the time of filing your Indian Income Tax Return (preferably ITR-2), disclose the capital gains under the “Exempt Income – DTAA” section and attach relevant documents

If tax was already deducted (TDS), you may be eligible for a full refund upon proper filing.

We assist UAE-based NRIs with the complete process:

● End-to-end TRC application support in the UAE
● DTAA documentation (TRC, Form 10F, declarations)
● Indian ITR filing for capital gains exemption
● Advisory on tax planning, real estate sales, and repatriation