🌍 Why an Ecuador Client Requested a Tax Residence Certificate — Dream Garden’s Apostille Compliance Case
1. The Background When Dream Garden (Toymaker in China) was finalizing an indoor playground project with an Ecuadorian client, everything seemed smooth — the design was approved, the materials were selected, and the quotation was confirmed. But before arranging payment, the client suddenly requested one more document: “Please provide a Chinese Certificate of Tax Residence , legalized with an Apostille .” Many factories might find this confusing. Why would a client buying playground equipment ask for a tax document from the Chinese government? The truth is, this certificate plays a key role in international trade and compliance , especially in transactions between countries with Double Taxation Agreements (DTAs). 2. Why Did the Ecuador Client Request This? China and Ecuador signed a Double Taxation Agreement to avoid charging tax twice on the same income. Under this agreement, the Ecuadorian buyer can enjoy a tax deduction or exemption — but only if they can prove t...