Do I owe tax in a certain country only if I have a bank account there?

[flyingadventures662]

Hello and Merry Christmas!

As stupid as this question may sound, I just want to be sure.

Imagine the scenario in which I open a bank/EMI account in a foreign country either on my name as physical person, or an account of my company. This country is not my home country, it's not the country in which my company is registered, it's not the country in which I live or work, and it's even not a country in which I own a property. Just me or my company has a bank/EMI account there.

Is there even any point in paying for tax consultant there to confirm for me that I am not tax liable in this country (as it seems quite obvious for me that I am not tax liable)?

Thanks in advance

 

[Marie Manila]

You won't become tax liable in a county just because of a bank account with one exception: withholding tax
So, if you gain some income in this account (e.g. interests or dividends on shares), the withholding tax may apply in some countries.
The bank will usually deduct this directly. So, you won't get into trouble.

 

[flyingadventures662]

Thanks. The money going through this bank account will be the dividend payed by my company to me (the owner) which is subject to withholding tax in the country I am tax resident of. But if I understood you correctly, you are talking that I will owe withholding tax just on the interests on my money I keep in that bank or any gains from holding shares in this bank, right?

 

[CyprusLawyer101]

The intetesrdorective applies only to interest. In any event no taxation is due to the place where the bank acc is opened, by virtue of openning an account in that jurisdiction. Therefore if you are recieving dividend income in this bank acc you shouldnt worry for any tax arising in the jurisdiction where the account is held

 

[flyingadventures662]

OK, it's clear to me now. Thanks you very much.