A Brief Concept of Tax Residence

 There are various taxation models where a taxpayer's residence is a crucial element. Whenever the conditions for residence are fulfilled, the taxman will apply taxes, sometimes to the taxpayer's surprise.   



Other nations tax citizens' worldwide income according to their citizenship, regardless of where they stay or live. Still, the majority of countries use a residence-based taxes system. Irrespective of where the income was created, its residents must pay taxes on it.

The same person may be subject to comparable taxes relating to the same subject matter in two or more countries for the same period under various taxation schemes. Even though some nations offer tax credits for international taxes or other relief to prevent double taxation on the same income, the consequences for the taxpayer can be harmful.

Cross-border situations require careful consideration of tax residency. Thumb guidelines and manually calculating the days in a particular country would not be enough because tax authorities might be well ahead of the game.

To learn more about tax residency, read the below-mentioned blog.

Read the blog:- https://www.centrolaw.ch/en/insights/detail/residence-in-international-tax-law-whenever-wherever


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