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I don’t believe that is correct. Your country of citizenship will by default view any income you have as taxable, no matter from where or where you get it. The
by drclau 5y ago
I don’t believe that is correct. Your country of citizenship will by default view any income you have as taxable, no matter from where or where you get it. The double taxation treaty exempts you entirely or partially, regardless of the obligations you have or not in the country of tax residency.
In other words it’s not about what you are taxed in other places, it’s about income.
Maybe someone with better knowledge can chime in.
- Y_Y 5y agoThis is true in the case of American citizens, as well as in many other countries in special cases (mostly to prevent people moving to "tax havens"). Otherwise it is not true, and the other countries in Europe and the Americas that I'm familiar with work on the basis of spending 183 nights within the territory, or having your primary business interest within that country. Of course the laws are long, varied and full of exceptions.
- arthur_sav 5y agoIf you don't reside in your country of citizenship (definition of residence varies by country) then you don't have to pay taxes in that country. US is the exception.
- ilammy 5y agoResidence and “tax residence” are different things. There are countries where you can be considered tax resident even if you don't step your foot there the whole year (often it's something like you having your family living there, or your business registered there). Some countries can treat you as tax resident by default if you are a citizen, unless proven otherwise, which you'd have to do in court if tax authorities decide to insist and you decide to disagree.
- egman_ekki 5y agoThat depends on the country and double taxation treaty. E.g. my country (a EU country that is not US) considers me a tax resident since I have 'permanent residence' in the country (weird concept that does not cease when you leave the country, you need to actively go to the bureau and ask it to be terminated, which a lot of people just ignore because they live in other EU country first as students and then they start working etc). You can have this permanent residence even if you haven't lived in the country for 15 years. Article 4, bullet point 1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/765411/Synthesised_text_of_the_Multilateral_Instrument_and_the_1990_Czechoslovakia_-_UK_Double_Taxation_Convention_as_it_applies_to_the_Slovak_Republic_-_in_force.pdf https://assets.publishing.service.gov.uk/government/uploads/...
- drclau 5y ago(Too late to edit the comment I am replying to) See here [0] a list of countries and their taxation methods. Go to Taxation Systems / Individuals, the table. [0]: https://en.wikipedia.org/wiki/International_taxation https://en.wikipedia.org/wiki/International_taxation