Seasonal or Permanent Tax Residence in the OECS with a difference from EMEA and Russia
FAQ with 2-Years Ahead plan for the Ever-Ready person
How is an Individual’s Tax Residency determined?
- I live in Russia that has moderate income tax system and the personal income tax rate is common 13% flat for individuals as tax residents. How do I work out my country(s) of tax residency?
The criteria for tax residency may be different from one country to another. For individuals, tax residence in a country can be based on a number of factors (one or more may apply) such as nationality, a number of days you spend in a country, place of work, accommodation, family ties and financial interests.
For example, in selective countries, an individual’s tax residency is based on the number of days* that individual has stayed in the country. *Number of days may vary, defines any specific country and may be different from one country to another.
For general illustration, an individual is said to be resident in the specific country, if such individual is in the specific country for more than 183 days in any fiscal year.
Typically, an individual will be resident for tax purposes in only one country (the country in which they live). Some individuals can be tax resident in more than one country.
How is zero PIT or Abolished Personal Tax for an Individual's Tax Residency determined?
- I live in a country that has no income tax system or the rate of personal income tax is nil (0%) or "zero PIT". How do I work out my country(s) of tax residency?
The amount of income tax you pay does not necessarily determine your tax residency status. Tax residency is based on the domestic rules of a country in which you may be considered a tax resident even though no income tax is paid or there is no income tax system.
If you live in a country that does not charge income tax or no income tax regime exists you may still be deemed a ‘resident person’ of that country and therefore resident for tax purposes subject to meeting the applicable residency requirements.
How is "no-income" Individual's Tax Residency determined?
- I am not in employment and do not pay tax because of "no-income" reason. I am unsure of my tax residency and what should I do?
Where you are “tax resident” is usually where you are liable to pay income tax, even if you are not required to pay any income tax, for example, you may be unemployed, a homemaker or a student and have no income that is subject to income tax.
Disclaimer and Important Information
This article is intended to provide a general level overview of tax residency for individuals and should not be used solely to determine or prioterize your tax residency status. Your country(s) of tax residency is based on your own personal circumstances. If after reading this article and accompanying pages of the A&P web-site(s) you are unsure of your tax residency status please contact a professional tax advisor as A&P cannot provide tax advice. You can also find lots more information on how to determine tax residency on the OECD website by using the following link to OECD "Tax | CRS Implementation and assistance | Tax Residency"
a&p article archive:
We are an EMEAC independent consulting firm, committedly neutral and impartial with no political, partisan or national interests and, with the explicit intention of creating open and equal dialogue between allies.