Tax residency vs bank accounts and emi

[Puzel12]

I was talking with multiple tax advisors in Poland, and they all mentioned that even bank accounts can decide about my tax residency, as these are serious connections with the country.
So my question is: If I am self-employed in Czech Republic but 100% of my clients are from Poland and I receive payments in PLN (polish currency) on fintech / emi (Revolut and ZEN). Can it be reason to try to assign me to polish tax residency? FYI. I also have bank accounts in other jurisdictions and I don't keep any assets in Poland or Czech Republic.

I think it's not a reason to be polish tax resident because:
1. Revolut and Zen aren't polish banks. They just give access to polish bank account with polish IBAN. Zen.com have bank license of Lithuania, and revolut in the UK. Btw. Both have head offices in Poland.
2. Currency and client's location don't decide about someone's tax residency. (I am doing online business - paid ads management more specifically)

Btw. In Poland maybe I am 20 days per year or something like that. I live tax-free country. Main reason why I keep my self-employed structure in Czech Republic is that I need to receive polish currency.

Please tell me if I am right/wrong.

 

[KDX]

I was talking with multiple tax advisors in Poland, and they all mentioned that even bank accounts can decide about my tax residency, as these are serious connections with the country.
So my question is: If I am self-employed in Czech Republic but 100% of my clients are from Poland and I receive payments in PLN (polish currency) on fintech / emi (Revolut and ZEN). Can it be reason to try to assign me to polish tax residency? FYI. I also have bank accounts in other jurisdictions and I don't keep any assets in Poland or Czech Republic.

I think it's not a reason to be polish tax resident because:
1. Revolut and Zen aren't polish banks. They just give access to polish bank account with polish IBAN. Zen.com have bank license of Lithuania, and revolut in the UK. Btw. Both have head offices in Poland.
2. Currency and client's location don't decide about someone's tax residency. (I am doing online business - paid ads management more specifically)

Btw. In Poland maybe I am 20 days per year or something like that. I live tax-free country. Main reason why I keep my self-employed structure in Czech Republic is that I need to receive polish currency.

Please tell me if I am right/wrong.

Where are you living in? Czech republic? Do you have TIN from there orr?

If you live in a tax-free country then you need to declare that as your tax residency. Banks might report you via CRS to Poland or any other country with significant ties because you do business there. But from what I know, they will not make you "tax resident". The countries are the ones that will decide if you are or not.

EDIT: I'm not sure if I got this right, but maybe you mean does having a bank account in Poland mean the Polish tax authority can claim you are tax resident there? Yes, I think so. If all of your clients are from Poland, you have polish bank accounts dealing with polish currency, then the tax office might claim that you are still tax resident. These could be "significant ties" IMO.

 

[Puzel12]

Where are you living in? Czech republic? Do you have TIN from there orr?

If you live in a tax-free country then you need to declare that as your tax residency. Banks might report you via CRS to Poland or any other country with significant ties because you do business there. But from what I know, they will not make you "tax resident". The countries are the ones that will decide if you are or not.

I cannot register zen or revolut under my country of residence, because it's not available here, but can in Czech Republic where I also deal with clients in polish currency and do my business (sole proprietorship). That's why.

Is it significant tie with the country if you deal with clients only from that country (online), and in their currency? I don't think that clients residence can assign tax residency if it's taken place 100% online. What do you think?

Will be Revoult and Zen considered same as local account in Polish bank? Maybe it's strange but zen required from me only residence details that I put by myself, no verification. I can get also business account with them instead so it will not be personal account, but does it metter? As I understand sole proprietorship can use personal account.

 

[KDX]

I cannot register zen or revolut under my country of residence, because it's not available here, but can in Czech Republic where I also deal with clients in polish currency and do my business (sole proprietorship). That's why.

Where do you reside? I'm not sure if that's a very smart thing to do... this could be viewed as fraudulent

Is it significant tie with the country if you deal with clients only from that country (online), and in their currency? I don't think that clients residence can assign tax residency if it's taken place 100% online. What do you think?

I think so yes, for example where I live, if the tax office would deem me tax resident, I would probably have to go to court and get them to overturn this decision. Do you see where this is going? They could all of a sudden decide you are tax resident. The key is to make it seem like you are gone for good. I'm not sure how it goes in Poland but here where I live it is like that.

Will be Revoult and Zen considered same as local account in Polish bank? Maybe it's strange but zen required from me only residence details that I put by myself, no verification. I can get also business account with them instead so it will not be personal account, but does it metter? As I understand sole proprietorship can use personal account.

Business or personal, doesn't matter. Again IMO its just the ties. If you are receiving all of your income from Poland, the tax authority could just say you are dependent on Poland therefore you should pay taxes there.

I recommend getting EMI/bank accounts where you can use your real residency retails.

 

[Martin Everson]

Duplicate thread to below. This one is closed now.

https://www.offshorecorptalk.com/threads/tax-residency-vs-bank-accounts-and-emi.36707/