How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3377
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

What is 'residential tax certificate' and to go about applyi

Customer Question

What is 'residential tax certificate' and to go about applying for one? We do a lot of business with the US and they keep asking for one. Can you please advise?

Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Here is the Internal Revenue Service advice on this matter: 'Form 8802, Application for United States Residency CertificationUse this form to request Form 6166, a letter of U.S. residency certification for purposes of claiming benefits under an income tax treaty or VAT exemption. You cannot use Form 6166 to substantiate that U.S. taxes were paid for purposes of claiming a foreign tax credit.' Under the Double Taxation Treaty between the UK and the USA (and indeed some individual States as well) the same income stream cannot be taxed in both jurisdictions. This is achieved by means of tax credits, any tax paid in one country being allowed as a tax credit against liabilities in another. The Treaty does not protect you from differences in rates of taxation. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.

Hi

I thought the form is to confirm our UK residency, they form you've mentioned is for US residency...

What am I missing?

Expert:  bigduckontax replied 1 year ago.
Well you did say 'they' keep asking for one; who are 'they?'
The form is an US IRS form and should shut everyone in the States up!
Customer: replied 1 year ago.

Hi and thank you

By they I mean our US clients. We are based in the UK only. We havent got an address in the US - dont we need one in order to apply for residency? Isnt there a UK residency form?

appreciated

Expert:  bigduckontax replied 1 year ago.
No there isn't, sorry! You will have to get the IRS to confirm your status. It must happen every day with international trading.
Please be so kind as to rate me before you leave the Just answer site.
Customer: replied 1 year ago.

Oh I see so although we are UK registered, so in order to trade with US and do take advantage of thte dual taxation we need to register for US residency? is that right? I'll start filling in the form and hopefully it will make more sense while doing it...

thank you

Expert:  bigduckontax replied 1 year ago.
No, not at all. You can trade with the US no problem without a certificate, but your US customers may want its re-assurance. It is not required to take advantage of the Double Taxation Treaty
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3377
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions