Tax Residency Certificate In UAE

In India, a Tax Residency Certificate (TRC) is an official document issued by the Income Tax Department. India has tax treaties with many countries to avoid double taxation. A tax residency certificate proves that an individual or company is resident in a particular country. Foreign investors and companies from other taxable jurisdictions can avoid double taxation. It is issued to Indian companies already registered or to individuals having valid Indian residency.

An individual who has stayed in India for more than 182 days in a financial year is eligible to get a Tax Residency Certificate. Companies in India can use the benefits of double taxation treaties as India has double tax treaties with dozens of countries. This is a bilateral agreement to protect the interests of foreign investors and companies from other taxable jurisdictions. Offshore companies are not eligible for Tax Residency Certificate in India but can get a tax exemption certificate instead. These certificates will make the company tax exempt under Indian laws.

There are some procedures to apply for a Tax Residency Certificate in India. Once the documents are submitted with the application, the certificate is issued within two months. The company should have been in India for at least three years before applying for the TRC.