Tax Residency Certificate is a Certificate issued by an Income Tax Authority of a Country certifying that the person / entity is Tax Resident ( Resident for the purpose of Taxation) of that country. Taxation of cross country transactions is determined as per the provisions of Income Tax Law of respective country and the provisions of Double Taxation Avoidance Agreement(DTAA) entered into between two countries. As the provisions of DTAA are applicable only to residents of that specific country, Income Tax Authorities of the country where the revenue is generated insist on Tax Residency Certificate from the receiver of revenue, to give benefits available under DTAA between two countries.
In India an application is made to the Income Tax Officer ( International Taxation) to obtain the Certificate, which is generally issued within a week time. There are no filing fees or other costs involved.
ADCA provides expert services in obtaining a Tax Residency Certificate from the Income Tax Department.