Tax Residency Certificate

A tax Residency Certificate is a Certificate issued by an Income Tax Authority of a Country certifying that the person or an entity is a Tax Resident of that country. Taxation transactions cross-country are determined based on the provisions of the Income Tax Law of the respective country and the requirements of the Double Taxation Avoidance Agreement(DTAA) between two countries. As the provisions of DTAA apply to residents of a specific country, Income Tax Authorities of that country where the revenue is generated insist on a Tax Residency Certificate from the receiver of revenue to give benefits available under DTAA between two countries.

In India, an application is sent to the Income Tax Officer ( International Taxation) to obtain the Certificate, and it is issued within a week. No other costs are involved in the above process.

MKDA provides expert services in obtaining a Tax Residency Certificate from the Income Tax Department.

• From 01.04.2012, An assessee, not being a resident in India, shall obtain Tax Residency Certificate (TRC) from the Government of the country or the specified territory of which the Assessee claims to be resident, which shall contain the following particulars, namely:-
• Name of the Assessee;
• Status (individual, company, firm, etc.) of the Assessee;
• Nationality (in case of an individual);
• Country or specified territory of incorporation or registration (in case of others);
• Assessee’s tax identification number in the country or specified territory of residence or case no such number, then, a unique number based on which the person is identified by the Government of the country or the specified territory;
• Residential status for tax;
• Period for which the certificate is applicable; and
• Address of the applicant for the period for which the certificate is applicable;
• The above details shall be provided by the non-resident Assessee in Form 10F
• The certificate referred to in sub-rule (1) shall be duly verified by the Government of the country or the specified territory of which the Assessee, referred to in sub-rule (1), claims to be a resident for tax.