TRC to Tax Relief: How UAE and Singapore Residents Claim DTAA on Indian Income
- Amal K B
- 14 hours ago
- 5 min read
Introduction
If you live in the UAE or Singapore and earn income from India such as dividends from Indian shares, interest on NRI deposits, rental income, or capital gains you may worry about paying tax twice. This can happen because India taxes the income where it is earned, while your country of residence may also tax the same income.
To prevent this, India has signed Double Taxation Avoidance Agreements (DTAAs) with both the UAE and Singapore. These agreements ensure that the same income is not taxed twice and often allow you to pay tax in India at a lower rate than the standard domestic tax rate.
However, you cannot claim these treaty benefits automatically. The most important document you need is a Tax Residency Certificate (TRC). A TRC is issued by the tax authority of your country of residence and proves that you are a tax resident of that country for a particular financial year.
Without a valid TRC, Indian companies, banks, and other payers are generally required to deduct tax at the higher domestic rate, even if you are eligible for lower tax under the DTAA.
What Is a Tax Residency Certificate (TRC)?
A TRC is official proof, issued by your home country's tax or revenue authority, that you are a tax resident there for a specific period. It is the document India requires before allowing you to pay tax at the lower DTAA rate on Indian-sourced income, rather than the standard non-resident rate. Each country issues it differently and calls it by a different name the UAE issues a Tax Residency Certificate through its Federal Tax Authority, while Singapore issues a Certificate of Residence (COR) through the Inland Revenue Authority of Singapore. In both cases, it must be renewed for each financial year in which you want to claim treaty benefits.
Benefits of Claiming DTAA with a TRC
Avoids double taxation. Income is not taxed in full both in India and in your country of residence the TRC lets you access the reduced DTAA rate directly at source.
Lower withholding tax in India. Indian payers can deduct tax at the treaty rate (commonly 10–15%) instead of the standard non-resident rate, which can exceed 20%.
Better cash flow. Since less tax is withheld upfront, more of your dividend, interest, or rental income reaches you immediately, rather than being tied up until a refund is claimed.
Recognised by Indian banks and fund houses. A TRC together with Form 10F is now the standard requirement Indian institutions ask for before applying treaty rates to NRE/NRO accounts, dividends, or mutual fund redemptions.
Stronger compliance position. Holding a valid TRC demonstrates genuine tax residency, which protects you if either tax authority later questions how the treaty benefit was claimed.
Complete Guide: Claiming DTAA as a UAE Resident
Issuing authority: Federal Tax Authority (FTA), UAE.
Eligibility: You must hold a valid UAE residence visa and Emirates ID, and generally have spent 183 days or more in the UAE within the relevant 12-month period. A shorter stay may still qualify with stronger proof that your centre of vital interests is in the UAE.
Step 1 Apply for the UAE Tax Residency Certificate
• Register on the FTA's EmaraTax portal and select the Tax Residency Certificate service.
• Submit the application with supporting documents and pay the applicable fee.
• The FTA typically issues the certificate within 2–4 weeks.
Documents required for the UAE TRC
• Passport copy with UAE entry/exit stamps
• Valid UAE residence visa and Emirates ID
• Certified tenancy contract or property title deed
• UAE bank statements for the relevant period, showing 183+ days of financial activity
• Salary certificate (for employees) or trade licence and audited accounts (for business owners)
Step 2 Claim the DTAA benefit in India
• File Form 10F online through India's income tax e-filing portal for the relevant financial year.
• Submit the UAE TRC, Form 10F, and a self-declaration of eligibility to the Indian bank, company, or fund house paying the income.
• The payer then applies the India-UAE DTAA rate instead of the higher default withholding rate.
• Renew the TRC each financial year, since the certificate is time-bound.
Complete Guide: Claiming DTAA as a Singapore Resident
Issuing authority: Inland Revenue Authority of Singapore (IRAS), which issues a Certificate of Residence (COR).
Eligibility: Individuals must be physically present or exercising employment in Singapore for 183 days or more in the calendar year, or have continuous employment spanning two years. Companies must show that control and management of the business is exercised in Singapore.
Step 1 Apply for the Singapore Certificate of Residence
• Log in to the IRAS myTax Portal and submit the COR application for the relevant year of assessment.
• Individuals typically receive the COR within 7–14 working days; company applications can take somewhat longer.
Documents required for the Singapore COR
• NRIC or passport
• Employment pass details (for employees) or ACRA business registration details (for companies)
• Latest Notice of Assessment from IRAS
• Proof of Singapore address
Step 2 Claim the DTAA benefit in India
• File Form 10F on India's income tax e-filing portal for the same financial year.
• Submit the Singapore COR, Form 10F, and a self-declaration of eligibility to the Indian bank, company, or fund house paying the income.
•The India-Singapore DTAA rate is then applied to dividends, interest, or other qualifying income.
• Renew the COR annually to keep claiming the treaty rate in future years.
Quick-Reference Summary
Country | Issuing authority | Indicative DTAA Rate | Typical processing time |
UAE | Federal Tax Authority (FTA) | 0–10% | 2–4 weeks |
Singapore | Inland Revenue Authority (IRAS) | 10–15% | 7–14 working days |
Common final step, for both countries
• Complete Form 10F online via India's income tax e-filing portal for the relevant financial year.
• Submit the TRC/COR, Form 10F, and a self-declaration of eligibility to the Indian payer before the income is credited.
• Retain copies of all documents, as Indian payers or tax authorities may request re-verification, especially for higher-value transactions.
Disclaimer
This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax residency rules, treaty rates, and application procedures vary and change periodically, and depend on individual facts and circumstances. Readers should verify current rules on the official websites of the FTA, IRAS, and India's Income Tax Department, and consult a qualified tax advisor before making any decisions or claims based on this information.
Sources
• Income Tax Department, Government of India guidance on Form 10F and DTAA claims by non-residents.
• Federal Tax Authority (FTA), UAE Tax Residency Certificate application process via EmaraTax.
• Inland Revenue Authority of Singapore (IRAS) Certificate of Residence application guidance.
• Central Board of Direct Taxes (CBDT) DTAA notifications relevant to the India-UAE and India-Singapore treaties.
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