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The full form of TRC is a Tax Residency Certificate. It is a certificate provided to a taxpayer from his/ her particular resident country to authenticate that the person has paid the tax as a resident. In this blog, we will try to learn more in detail about what is it and what are the benefits of the abbreviation.
Tax Residency Certificate
A Tax Residency Certificate (TRC) is a document issued by the tax authorities of a country to certify that a taxpayer is a resident of that country for tax purposes. TRCs are often required to claim tax benefits under double taxation avoidance agreements (DTAs).
What details are asked in TRC?
It includes the following information:
- Taxpayer’s name and address
- Their identification number
- Country of Residence
- Period of validity of the certificate
TRCs can be issued to individuals, companies, and other legal entities. They can be obtained from the tax authorities of the country in which the taxpayer is resident.
Also Read – What is the full form of ITR?
What are the Benefits of TRC?
The document can provide several benefits to taxpayers, including:
- Reduced withholding taxes on interest, dividends, and royalties
- Exemption from double taxation
- Access to tax credits and deductions
While TRCs are primarily used for tax purposes, they can also be used for other purposes, such as:
- Opening a bank account in a foreign country
- Obtaining a visa
- Purchasing property in a foreign land
- Registering a company in a foreign country
Also Read – What is the Full Form of IRS?
Example:
A financial institution may require a TRC from a non-resident customer before opening an account or making an investment. This is to ensure that the customer is taxed correctly in their country of residence.
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We hope this blog has helped you understand the full form of TRC and everything related to it. If you want to know more, find the 300+ full forms list on our blog. In the world of short forms, you can rely on the Leverage edu page to know about more full forms like this! Connect with us study abroad experts to achieve your international dream today!