A Saudi Tax Residency Certificate is an official document issued by the Zakat, Tax and Customs Authority (ZATCA) confirming that an individual or company is a tax resident of the Kingdom of Saudi Arabia. This certificate is crucial for accessing double taxation treaty benefits, avoiding tax duplication on foreign income, and demonstrating legitimate tax residency status to international tax authorities or business partners.
For individuals, the certificate serves as evidence of residency based on the number of days spent in Saudi Arabia and compliance with local tax obligations. For companies, it validates that their management and operations are effectively controlled from within the Kingdom. Having this certification is especially important for multinational entities and expatriates engaged in cross-border business or investment activities. ➡️Oil & Gas Courses in Dubai, UAE
The process of obtaining the certificate requires careful preparation and adherence to ZATCA’s digital application procedures. This article provides a step-by-step guide covering eligibility requirements, application submission, required documentation, and essential tips to ensure a smooth and successful process for securing your Saudi Tax Residency Certificate.
What Is a Tax Residency Certificate in Saudi Arabia?
A Tax Residency Certificate (TRC) in Saudi Arabia is an official document issued by the Zakat, Tax and Customs Authority (ZATCA) confirming that an individual or legal entity qualifies as a resident for tax purposes under Saudi tax regulations. The certificate verifies that the applicant’s center of management, control, or personal presence is within the Kingdom during the relevant tax period.
The primary purpose of the TRC is to enable access to benefits under Double Taxation Avoidance Agreements (DTAAs) that Saudi Arabia has signed with other countries. It helps taxpayers avoid being taxed twice on the same income in two jurisdictions and supports claims related to withholding tax reductions or exemptions under these treaties.
It’s important to note that being a tax resident is not the same as holding a residence permit (iqama). A residence permit allows an expatriate to live and work in Saudi Arabia, but tax residency is determined by specific legal and economic criteria, such as the duration of physical presence or the location of management and operations for businesses.
In short, the Saudi Tax Residency Certificate is a vital compliance document that establishes one’s fiscal identity and helps optimize international tax obligations within a lawful framework.
Eligibility Criteria
To qualify for a Saudi Tax Residency Certificate (TRC), applicants must meet specific residency and legal presence conditions defined by the Zakat, Tax and Customs Authority (ZATCA). Eligibility differs slightly between individuals and legal entities, but both must demonstrate a substantial connection to Saudi Arabia for tax purposes.
For Individuals:
- Physical Presence Test:
The individual must be physically present in Saudi Arabia for 183 days or more during a tax year, or
must have a permanent residence in the Kingdom and be present for at least 30 days within the same period. - Legal Residence:
The individual must hold a valid residence permit (Iqama) or equivalent status and be able to prove a registered place of residence in Saudi Arabia, such as a rental agreement or home ownership documentation.
For Legal Entities:
- The company must be incorporated under Saudi law, or
- Have its management and control effectively exercised within Saudi Arabia, such as through board meetings or executive operations conducted inside the Kingdom.
It’s important to note that meeting the minimum presence or registration requirements alone does not guarantee approval. Applicants must also demonstrate accurate tax compliance, valid documentation, and consistency in financial records to satisfy ZATCA’s verification process.
Proper preparation and adherence to documentation standards are critical to ensuring a successful TRC application for both individuals and businesses.
The Application Process
Obtaining a Saudi Tax Residency Certificate (TRC) is now a streamlined digital process managed entirely through the Zakat, Tax and Customs Authority (ZATCA) E-Service Portal. Both individuals and companies can apply online by following these structured steps. ➡️Finance & Accounting Courses in Dubai
Step 1 – Access ZATCA’s E-Service Portal
Begin by visiting the ZATCA website and navigating to the “Tax Residency Certificate” service listed under the E-Services section.
- Log in using your registered ZATCA account credentials (for individuals or corporate taxpayers).
- Select “Tax Residency Certificate” from the list of available services.
- Fill in the necessary application details accurately before submitting your request.
The portal provides a secure digital environment where all information is validated through national databases, ensuring accuracy and compliance.
Step 2 – Complete the Application Form & Upload Documents
Applicants are required to complete an online form with the following information:
- Full legal name and identification details (passport or Iqama number).
- Residential or business address within Saudi Arabia.
- Tax identification number (if applicable).
- Period of residency for which the certificate is being requested.
Next, upload all supporting documents in digital format (PDF or scanned copies). These typically include identification, proof of residence, and tax filings (see next section for details).
The ZATCA system also allows applicants to track the status of their submission in real time through the online dashboard.
Step 3 – Submission & Waiting
Once the form and documents are submitted, ZATCA conducts a detailed review to confirm eligibility and tax compliance.
- The processing time can vary depending on the completeness of documentation, but applications with clear and verified data are often approved within a few working days.
- If approved, the Tax Residency Certificate is issued electronically and made available for download directly from the portal.
Applicants may also receive a notification or email once the certificate is ready.
Step 4 – Certificate Validity & Renewal
The Saudi Tax Residency Certificate is generally valid for one fiscal year from the date of issuance. It is essential to maintain validity if you continue to rely on the certificate for tax treaty benefits or foreign reporting obligations.
- Renewal or re-application is required if your residency status, company structure, or tax circumstances change.
- It is advisable to begin the renewal process well before the expiry date to ensure uninterrupted compliance and treaty eligibility.
By following these structured steps and ensuring all documents are accurate and up to date, individuals and businesses can efficiently secure their Saudi Tax Residency Certificate through ZATCA’s digital platform. ➡️Training Courses in Riyadh
Documents Required
When applying for a Saudi Tax Residency Certificate (TRC) through the ZATCA E-Service Portal, applicants must submit a set of verified documents to establish their eligibility and residency status. The following checklist outlines the typical documents required by ZATCA for both individuals and legal entities:
For Individuals:
- Valid passport or national ID (for Saudi nationals).
- Residence permit (Iqama) for expatriates, showing valid residency in the Kingdom.
- Proof of physical presence and residence, such as:
- A valid rental contract or ownership deed of residence.
- Utility bills (electricity, water, internet) in the applicant’s name.
- Bank statements showing consistent transactions and a Saudi address.
- Employment verification letter from the employer or a salary certificate confirming ongoing work in Saudi Arabia.
- Any additional documents ZATCA may request for further verification (e.g., tax filing records or proof of income source).
For Legal Entities (Companies):
- Commercial registration certificate and tax identification number (TIN).
- Articles of association or company charter showing ownership and control structure.
- Audited financial statements for the relevant fiscal year.
- Proof of management and control in Saudi Arabia, such as board meeting minutes or directors’ residency details.
- Lease agreement or office ownership document confirming physical business presence within the Kingdom.
- Any other supporting records requested by ZATCA to verify compliance and operational activity.
It’s important to ensure that all uploaded documents are clear, current, and consistent across application records. Incomplete or outdated documentation may delay approval or result in rejection.
For corporate applicants, ZATCA may conduct additional checks—including verification of tax filings and financial audits—to confirm that the entity’s effective management and control are indeed exercised within Saudi Arabia. Preparing these documents in advance helps ensure a smooth, efficient process and minimizes the likelihood of application delays or rejections.
FAQs
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How many days must I stay in Saudi Arabia to get a tax residency certificate?
To qualify for a Saudi Tax Residency Certificate (TRC), individuals must be physically present in Saudi Arabia for at least 183 days in a tax year, or they must have a permanent residence in the Kingdom and be present for a minimum of 30 days during that period. The exact determination depends on proof of residence and compliance with ZATCA’s residency criteria.
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Can a foreign company obtain a Saudi TRC?
Yes. Foreign companies can obtain a Saudi Tax Residency Certificate if they have a permanent establishment or if their management and control are effectively exercised from within Saudi Arabia. They must provide supporting documents such as audited financial statements, board meeting minutes, and commercial registration to verify business activity and tax compliance.
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What documents do I need to apply for a Saudi TRC?
Applicants typically need to submit the following documents to ZATCA:
- Valid passport or national ID
- Residence permit (Iqama) for expatriates
- Proof of residence (rental contract, utility bills, or bank statements)
- Employment verification or business licence
- For companies: commercial registration, audited financials, and proof of management control
Additional records may be requested by ZATCA during verification.
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Is there a fee for obtaining a Tax Residency Certificate from ZATCA?
Yes. ZATCA may charge a nominal service fee for processing the Tax Residency Certificate application. The fee amount can vary depending on the applicant type (individual or company) and is payable through the ZATCA E-Service Portal during the submission process.
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How long does it take to receive the certificate?
The processing time for a Saudi TRC varies based on documentation accuracy and applicant eligibility. In most cases, if all documents are complete and verified, the certificate can be issued within a few working days. Applicants can monitor their application status directly through the ZATCA online portal.
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What happens if I don’t renew my TRC and my residency status changes?
If your Tax Residency Certificate expires or your residency status changes, you may lose eligibility for double taxation treaty benefits. It’s essential to renew the TRC annually or whenever significant changes occur in your residence, employment, or business status. ZATCA requires updated information to maintain tax compliance.
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Will a Saudi TRC exempt me from all taxes?
No. A Saudi TRC does not exempt an individual or company from all taxes. Instead, it serves as proof of tax residency, helping to avoid double taxation by claiming relief or exemptions under Saudi Arabia’s tax treaties (DTAAs). Local tax obligations, such as zakat or income tax, may still apply where relevant.
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How does the TRC help with double taxation avoidance agreements (DTAA)?
A Tax Residency Certificate enables taxpayers to access treaty benefits under Double Taxation Avoidance Agreements (DTAAs) between Saudi Arabia and other countries. It ensures that income earned abroad is not taxed twice and allows for reduced withholding tax rates or full exemptions, depending on the terms of the applicable treaty.
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