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    Opinion TRC PDF

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    Akash Bagrecha
    The process to obtain a tax residency certificate (TRC) in the US takes 4-6 weeks. An individual uses Form 8802 to request Form 6166 and pays a $85 user fee. They then submit the form and required attachments to the IRS. In the UK, the process takes 2-3 weeks. An individual can apply online, by email, or through an agent. They submit the required application and documents. A US or UK citizen paid by an Indian organization can file tax returns in their home country claiming exemption for the Indian income if applicable taxes were withheld in India as per the double taxation avoidance agreement between the countries. They should consult a local tax consultant. The Indian entity must deduct taxes

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    Opinion TRC PDF

    Uploaded by

    Akash Bagrecha
    35 views4 pages
    The process to obtain a tax residency certificate (TRC) in the US takes 4-6 weeks. An individual uses Form 8802 to request Form 6166 and pays a $85 user fee. They then submit the form and required attachments to the IRS. In the UK, the process takes 2-3 weeks. An individual can apply online, by email, or through an agent. They submit the required application and documents. A US or UK citizen paid by an Indian organization can file tax returns in their home country claiming exemption for the Indian income if applicable taxes were withheld in India as per the double taxation avoidance agreement between the countries. They should consult a local tax consultant. The Indian entity must deduct taxes

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    The process to obtain a tax residency certificate (TRC) in the US takes 4-6 weeks. An individual uses Form 8802 to request Form 6166 and pays a $85 user fee. They then submit the form and required attachments to the IRS. In the UK, the process takes 2-3 weeks. An individual can apply online, by email, or through an agent. They submit the required application and documents. A US or UK citizen paid by an Indian organization can file tax returns in their home country claiming exemption for the Indian income if applicable taxes were withheld in India as per the double taxation avoidance agreement between the countries. They should consult a local tax consultant. The Indian entity must deduct taxes

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    35 views4 pages

    Opinion TRC PDF

    Uploaded by

    Akash Bagrecha
    The process to obtain a tax residency certificate (TRC) in the US takes 4-6 weeks. An individual uses Form 8802 to request Form 6166 and pays a $85 user fee. They then submit the form and required attachments to the IRS. In the UK, the process takes 2-3 weeks. An individual can apply online, by email, or through an agent. They submit the required application and documents. A US or UK citizen paid by an Indian organization can file tax returns in their home country claiming exemption for the Indian income if applicable taxes were withheld in India as per the double taxation avoidance agreement between the countries. They should consult a local tax consultant. The Indian entity must deduct taxes

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    of 4

    Opinion on Tax Residency Certificate

    Recipient: The Circle Foundation


    Date – 16th Mar, 2023
    Issue #1:
    Could you outline the process and timelines for getting a TRC in the US and UK?

    General Overview:
    Any individual who is a non-resident of India, as per Indian IT law, should obtain a Tax
    Residency Certificate from the country’s government or the territory of which he/she
    claims to be a resident. This TRC has to contain the following details, namely:-
    1. Taxpayer’s name
    2. Taxpayer status (firm, company, individual etc.)
    3. Nationality or specified territory/country of incorporation (in case of a LLP, company
    or Firm) or registration
    4. Taxpayer's tax ID number
    5. Residential status
    6. Certificate validity period and
    7. Taxpayer address for the time period in which the certificate is applicable;

    Opinion
    Process to Obtain TRC in US
    Step 1 - Use Form 8802 to request Form 6166, a letter of U.S. residency certification for
    purposes of claiming benefits under an income tax treaty or value added tax (VAT)
    exemption.
    Step 2 – Fill Form 8802 that can be found in the following link -
    https://www.irs.gov/forms-pubs/about-form-8802 (Also attached in Annexure I)
    Along with it Instructions for form 8802 in attached in Annexure II for your reference.
    Step 3 – Pay the mentioned User Fee for $85. After you have received your electronic
    payment confirmation number, and entered it on page 1 of Form 8802, you can submit
    Form 8802 and all required attachments by mail, private delivery service, or fax (see
    below for limitations on the use of faxed transmissions).
    If you are paying the user fee by e-payment, send Form 8802 and all required
    attachments to:
    Department of the Treasury
    Internal Revenue Service
    Philadelphia, PA 19255-0625

    Or, by private delivery service to:


    Internal Revenue Service
    2970 Market Street
    BLN# 3-E08.123
    Philadelphia, PA 19104-5016
    Fax.
    You can fax up to 10 Forms 8802 (including all required attachments) for a maximum of
    100 pages to the fax numbers below. You must use a fax cover sheet stating the number
    of pages included in the transmission.
    The following fax numbers are available..
    • 877-824-9110 (within the United States only, toll free).
    • 304-707-9792 (inside or outside the United States, not toll free).

    Timeline for the process to Obtain TRC in US


    Usually, it takes 4-6 weeks for the entire process to obtain the Tax residency certificate.
    Process to Obtain TRC in UK
    Step 1 – To Apply for Certificate of residence (CoR). You can do it in three ways
    (i) You can use the online service (You will need to sign in using Government Gateway
    user ID , if new user you create new one)
    (ii) email a form (you will not need to sign in to an online account)
    (iii) if you’re an agent applying on behalf of an individual or sole trader you can apply
    online
    Step 2 – Based on the method of application, online or email , once done submit the
    application.

    Timeline for the process to Obtain TRC in UK


    Usually, it takes 2-3 weeks for the entire process to obtain the Tax residency certificate.
    Issue #2:
    Could you outline the process for claiming tax rebates when a UK or US citizen is paid by
    an Indian organization?
    General Overview:

    You may have incomes from more than one country. Such incomes may be taxable in
    both countries due to their domestic laws even though you are a tax resident in only one
    of those countries. Thus, to avoid paying such double taxes on the same income in both
    the source country and country of residence, double taxation avoidance agreements
    (“DTAA”) (otherwise known as tax treaties) are entered between various countries. Such
    agreements offer the taxpayers the benefit of tax paid in the other country with which it
    has a tax treaty.

    The Indian government has various DTAA with various countries. These tax treaty
    provisions apply only to residents of those countries which are parties to such tax treaties.
    Therefore, it becomes pertinent to confirm which country the person is a tax resident of.
    One of the main pieces of documentary evidence to establish tax residency and support
    eligibility for a DTAA relief claim is a tax residency certificate (“TRC”).
    Opinion
    The US / UK citizen can file their tax returns as required in their country and income
    earned in India will not be taxable in citizen home country if applicable withholding taxes
    are paid to the Indian government and as per the DTAA agreement of countries with India.
    However, for any specific advice on the same, they may reach out to any local consultant
    in their country while filing their tax returns.
    TDS must be deducted by Indian Entity before making payments to Non-Resident as per
    applicable withholding rates. (So the payment to Non Resident will be net off TDS)
    TRC is needed to avoid taxation on same income in their home country.

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