Banking starting 500 Euro

Our valued sponsor

EmiratesSetup
SWISSMONEY Iban Accounts with Sepa
EmiratesSetup

citizenship vs place of residence

M

michael reader

BANNED MEMBER
Apr 29, 2018
117
17
18
52
Visit site
#1
will the citizenship and/or place of residence make a difference as far as taxation purposes to what government has the final say as far as taxation goes? will their citizenship and/or/both place of residence make a difference how they get taxed by a government or to what government they will have to pay taxes to? lets say i was born and live in argentina, born in argentina but live in chile , or was born in argentina but became a citizen of chile? would any of these three have the final say to which government i pay my offshore banking taxes to? to which government/country will i have to answer to when it comes to paying the taxman? this is a complicated question so thats why im asking. rsvp.
 
  • Like
Reactions: happyjohn
#2
michael reader said:
this is a complicated question so thats why im asking. rsvp.
Click to expand...
A realy complicated question.

I suppose your place of birth has no significance at all. What matters are the following:
1) Source of income (domestically, externally)
2) Place of residence
3) Place of temporary residence
4) Citizenship

In each country, as a rule, their own approach to the issue of paying taxes. You need to look at the tax laws of the countries you are asking about.
So you need to look at what is the tax base in a particular country.

P.S. But I usually make it easier - I am writing a written request, with a short description of the situation, to the tax authority of one country, and the authority of the second country. I receive two letters - and analyze what they wrote there. This is the easiest and cheapest way. Sometimes, by the way, you can write directly to an e-mail - the Estonian tax authority responds within 2-3 hours (for example).

There are no general rules.
 
  • Like
Reactions: happyjohn
#3
Honest Junior has a good answer. However, the general rule that is almost universal all around the world in every tax code - "Residents are taxed on world-wide income, non-residents are taxed on local income only". You can look up Deloitte, KPMG or EY tax highlights. They cover pretty much every country every year - i.e. Google "Argentina highlights 2018" and on a first page of results, you get a nice PDF document from Deloitte that gives you a summary. This does not constitute final conclusions but gives you a good starting point for analysis. Once you have read the highlights, you can ask the right questions from a paid consultant. If you go completely unprepared, your bill will be much higher.

Citizenship does not matter, unless you're a citizen of USA or Eritrea.

Here are the general defaults

1. If you have kids younger than 18 and/or wife in country X, you're in 95% of cases considered tax resident of X even if you spend no time in that country yourself. Young kids and/or wife is considered the strongest indicator of residence among all. Both over-rule all identity cards and passports of any nation. If there is no double tax treaty in place, the country where your wife and kids live has the 1st right to tax you. Countries Y and Z who also consider you their tax resident can only tax you on the remainder - if country X taxed you for 25% but county Y has tax rate of 30%, they may tax you for the remaining 5% but not more. Such situations are typically resolved in double tax treaties.

2. Of secondary importance, after place of residence of your young kids and wife come the days you spend in a country. Typically, if you spend 183 days in a country, you're resident. If you spend less, you're just a tourist with no tax obligations, unless you earn income in that country during your stay.

...

There are more indicators but I stop here to avoid content bloat. Just read the highlights of Deloitte, KPGM and EY. Then formulate your questions. Once you have the (as specific as possible) questions, have a paid tax consultant who is familiar with the local laws look into your case. So in your case, someone who knows about Argentina and Chile.

Regards,
 
  • Like
Reactions: extremedox101 and Honest Junior
#4
where can i download deloitte, kpgm and ey on pdf form if possible? rsvp





xzars said:
Honest Junior has a good answer. However, the general rule that is almost universal all around the world in every tax code - "Residents are taxed on world-wide income, non-residents are taxed on local income only". You can look up Deloitte, KPMG or EY tax highlights. They cover pretty much every country every year - i.e. Google "Argentina highlights 2018" and on a first page of results, you get a nice PDF document from Deloitte that gives you a summary. This does not constitute final conclusions but gives you a good starting point for analysis. Once you have read the highlights, you can ask the right questions from a paid consultant. If you go completely unprepared, your bill will be much higher.

Citizenship does not matter, unless you're a citizen of USA or Eritrea.

Here are the general defaults

1. If you have kids younger than 18 and/or wife in country X, you're in 95% of cases considered tax resident of X even if you spend no time in that country yourself. Young kids and/or wife is considered the strongest indicator of residence among all. Both over-rule all identity cards and passports of any nation. If there is no double tax treaty in place, the country where your wife and kids live has the 1st right to tax you. Countries Y and Z who also consider you their tax resident can only tax you on the remainder - if country X taxed you for 25% but county Y has tax rate of 30%, they may tax you for the remaining 5% but not more. Such situations are typically resolved in double tax treaties.

2. Of secondary importance, after place of residence of your young kids and wife come the days you spend in a country. Typically, if you spend 183 days in a country, you're resident. If you spend less, you're just a tourist with no tax obligations, unless you earn income in that country during your stay.

...

There are more indicators but I stop here to avoid content bloat. Just read the highlights of Deloitte, KPGM and EY. Then formulate your questions. Once you have the (as specific as possible) questions, have a paid tax consultant who is familiar with the local laws look into your case. So in your case, someone who knows about Argentina and Chile.

Regards,
Click to expand...
 
#5
#6
#9
michael reader said:
what if the person hasnt had a formal job in some third world country like chile, panama, argentina, ect...... what then in their case? rsvp.

they worked informally that is? they didnt have a formal job where theyre on somebodys payroll. rsvp
Click to expand...

They can try flying under the radar but having their income derive from a formal job or not doesn't change the tax obligations on their local source of income. Penalties for non-disclosure are steep. I don't know about Chile, Argentina or Panama but most of the developed world demands official registration of foreign workers from as little as 2 week projects. If the worker isn't on anyone's payroll, he must register himself at the tax office. Also, why label these countries 3rd world? Panama and Chile are not doing that bad.

Regardless, as your questions are formulated, it's already clear to anyone it's a risk-reward scenario rather than "is it by the law book"?
 
  • Like
Reactions: happyjohn
You must log in or register to reply here.
EmiratesSetup

Forum Announcement

Latest Threads

Offshore Bank Accounts
SWISSMONEY Iban Accounts with Sepa
The KingDom Bank
Top Bottom
Back