Don't Get Caught Without a TRN: Verifying Your Tax Status in Dubai


    Don't Get Caught Without a TRN: Verifying Your Tax Status in Dubai

    As we enter into 2017, there are still many businesses in Dubai that have yet to register their Tax Residence Number (TRN) with the Department of Economic Development (DED). If you’re one of these businesses, don’t worry! You have until January 31st to get your TRN in order, or else you’ll face fines up to AED 250,000. Still not worried? Remember, this deadline applies to both new and existing businesses; if you’re currently operating in Dubai without a valid TRN, be sure to submit one before the end of the month.

    Click TRN Verification Dubai to see intriguing realities about TRN.

    What is Tax Registration Number (TRN)?

    In United Arab Emirates (UAE), businesses are required to have tax registration number (TRN) issued by Department of Economic Development, Abu Dhabi and as per UAE Federal Tax Law Number 2/2006. All commercial companies and establishments including sole proprietorships and representative offices of foreign companies are required to register with URA’s DGFT.

    Why do you need a TRN?

    You need to apply for and receive a Trade Reference Number (TRN) to start or continue your business operations. A Trade License is issued only when you have obtained a TRN. You also need an active TRN number if you want to file your annual tax return. And, even if you’re not registered with any government agency in Dubai, you still may be required to get a VAT registration number before starting your business.

    How to get a valid tax registration number

    The first step to registering your business and conducting any activities within Dubai is to obtain your tax registration number, also known as a Tax Reference Number (TRN). It may be surprising that obtaining such an important piece of documentation is easy and quick. If you have already completed all necessary paperwork, you should be able to obtain your TRN within one business day.

    How to go about applying for your TRN?

    Applying for your Trade Registration Number (TRN) with the Business Registration and Licensing Authority (BRA) is an important step toward operating your business legally. However, it can be a confusing process to navigate alone; luckily, many licensed accountants in Dubai offer their services to help you through it. At least one meeting with an accountant will be necessary at some point before you apply for your TRN; do yourself a favor and get one scheduled right away.

    Where are you able to use it?

    If you’re operating in the UAE, then you’ll need to check your tax status with Federal Tax Authority (FTA). VAT is only applicable for specific businesses. If your business is subject to VAT, or if it has crossed certain thresholds of annual revenues, then you will need to apply for an International Trader Number (ITN) at FTA. This number will be used to facilitate all import and export duties and taxes associated with being an exporter in UAE.

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