A Tax Residency Certificate (TRC) issued by ZATCA certifies that a person or entity is a tax resident of Saudi Arabia for a given period. It is used to claim double tax treaty benefits (e.g. reduced withholding tax abroad) and to support WHT relief claims. This guide covers when you need a TRC, who can apply, how to apply via ZATCA, validity, and how to use it for treaty relief. See withholding tax, transfer pricing, CIT, and profit repatriation.
Overview
Tax residency certificates are standard under double tax treaties. The Saudi TRC confirms to the tax authority of another country that the applicant is a resident of Saudi Arabia for tax purposes for the period stated, so that the other country can apply the treaty (e.g. lower WHT on dividends, interest, or royalties). Saudi companies and branches, as well as individuals who are Saudi tax residents, can apply to ZATCA for a TRC.
When a TRC Is Needed
You typically need a Saudi TRC when: (1) receiving income from another country that withholds tax and you want to claim the treaty rate (e.g. dividends, interest, royalties from a treaty partner); (2) the foreign payer or their tax authority requires proof of Saudi residence; (3) applying for a refund of excess withholding in the other country. The TRC is usually submitted to the foreign tax authority or payer; keep a copy for your records and for ZATCA if asked.
Who Can Apply
Saudi tax residents can apply: companies (e.g. Saudi LLC, joint stock company) that are resident in Saudi Arabia for tax purposes; branches of foreign companies that are taxed in Saudi Arabia; and individuals who are tax resident in Saudi Arabia (e.g. under the 183-day or other residence rules). The entity or person must have a valid tax registration with ZATCA and be able to demonstrate residence for the period requested.
How to Apply
Applications are made through the ZATCA portal. Log in with the taxpayer's credentials, complete the TRC application form, and specify the tax year or period for which the certificate is required. ZATCA may request supporting documents (e.g. proof of incorporation, tax registration, or for individuals proof of presence). Processing time varies; apply in advance of needing the certificate. Once issued, download and retain the TRC; you may need to submit the original or a certified copy to the foreign authority depending on their requirements.
Validity and Renewal
The TRC is usually issued for a specific tax year or period. For ongoing treaty relief (e.g. annual dividend payments), you may need to apply for a new TRC each year or ensure the period on the certificate covers the income. Check the other country's requirements: some accept a TRC for the calendar or fiscal year in which the income arises. Renew in good time before the next payment or filing season.
Using the TRC for Treaty Relief
Submit the TRC to the withholding agent (payer) in the other country so they can apply the reduced treaty rate. Alternatively, the foreign tax authority may require it with a refund claim. Ensure the TRC clearly states Saudi Arabia as the country of residence and the correct period. If the other country has a specific form (e.g. W-8BEN-E equivalent or treaty declaration), complete it and attach the TRC as required. For inbound payments to your Saudi entity (where a non-resident pays you), the non-resident obtains a TRC from their country; for outbound (you receive from abroad), you need the Saudi TRC. See withholding tax for WHT on payments from Saudi Arabia to non-residents.
TRC Checklist
- Confirm you are a Saudi tax resident (company, branch, or individual) and have ZATCA registration.
- Determine the tax year or period the foreign payer or authority requires for the TRC.
- Apply via the ZATCA portal in good time; provide any requested supporting documents.
- Once issued, submit the TRC to the withholding agent or foreign tax authority as required.
- Renew for each new tax year if you receive recurring income that relies on treaty relief.