All About Tax Residency Certificate in Saudi Arabia

Zakat, Tax and Customs Authority (ZATCA) is the tax implementation authority in the Kingdom of Saudi Arabia (KSA). The KSA residency must comply with the applicable tax laws and pay taxes. Hence, it is crucial for them to understand the tax laws and their implications.

The KSA tax laws introduced the concept of Tax Residency Certificates (TRC) to help resident taxpayers. This article explains all about tax residency certificate, including what it is, who can get it, how to get it, benefits, etc.

What is a Tax Residency Certificate (TRC)?

KSA operates a residence-based tax system. This means your residency status determines your tax obligations. A Tax Residency Certificate (TRC) is an official document issued by ZATCA that verifies your tax residency for KSA income tax purposes.

The TRC helps you claim tax benefits under Saudi tax regulations or double taxation avoidance agreements entered with other countries.

Who can apply for a tax residency certificate in KSA?

Individuals residing in KSA for more than 183 days are eligible to apply for a TRC. You must also possess a valid passport and proof of residency within the Kingdom to apply for TRC.

How do you obtain a tax residency certificate in KSA?

Obtaining a TRC in KSA is a convenient process:

• Online: Apply electronically through the ZATCA website (https://zatca.gov.sa/en/eServices/Pages/eServices_084.aspx) or their mobile app. Here’s the path to be followed:

Go to the ZATCA website → select the “E-services” tab → Select “Tax Residency Certificate” → Request the service

• In-Person: Visit a ZATCA branch office.

Typically, no documents are required to apply. However, you must provide your residency and passport details during the application process.

Benefits of having a tax residency certificate

A TRC offers several advantages, including:

• Potential tax exemptions: Depending on your residency status and applicable tax treaties, you may be exempt from paying income tax in KSA.
• Simplified tax filing: The TRC can streamline the tax filing process, especially if you have income from other countries.
• Access to benefits: The TRC may be required to access specific benefits or services in KSA.

A tax residency certificate in KSA is a valuable document for residents seeking clarity on their tax obligations and potentially claiming tax benefits.