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Who is a resident in the notion of "Residence-based taxation"?

romashkavarashka

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Nov 1, 2019
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In "Residence-based taxation" scheme, does "resident" refer to a tax resident -- one who's lived in a country for 183 days this year?


Or a one who, for instance, yesterday obtained some special permit of a country that allows him to stay in a country for the next 5-10 years? "Malaysia my second home", "Thai Elite", for example. But he may be staying a country 1 month per year and not more. That is, he won't be a tax resident any year. Although, he's still another type of resident of a country.
 
The meaning can only be inferred from the context in which the word "resident" is being used. If it's for tax purposes, then only the individual who's spent 183 days in a year in the country (among other specific rules to each country) is a resident. Someone who's got a residence visa has the the right to live in the country and may well call him or herself a "resident", but if he or she isn't spending enough time there to fall in the resident for tax purposes definition, then he's not a resident for tax purposes (which is, well, an obvious conclusion).
 
It's usually someone who actually lives in the jurisdiction long enough to be tax resident. But make sure you read the relevant law, and/or consult with an adviser, as there can be important differences.
 
In "Residence-based taxation" scheme, does "resident" refer to a tax resident -- one who's lived in a country for 183 days this year?


Or a one who, for instance, yesterday obtained some special permit of a country that allows him to stay in a country for the next 5-10 years? "Malaysia my second home", "Thai Elite", for example. But he may be staying a country 1 month per year and not more. That is, he won't be a tax resident any year. Although, he's still another type of resident of a country.
You can be tax resident in Cyprus spending 60 days by year. Not Necessary in one time. You can spend it in some travels. And you be considered tax resident, and after 60 days yo will get the fantastic tax certificate;)
And to get the non don residence it's very very easy if you have the correct contact
 
A simple look at these definitions:

1) Residence == Tax Residence ; When you arrive and register yourself as a resident in a country
2) Residence != Tax Residence ; When you register yourself as a non-resident and declare intent to leave the country

The ultimate purpose of playing around with words and definitions is blatantly obvious. They want to make it seamlessly easy to get on the taxman's hook, but much harder to break free. That's why if you're a resident, you're also, almost always, a tax resident; however, when you're a non-resident, you can still be deemed a tax resident by various tests and laws which are getting ever more stringent. Countries like Spain, France, Poland, and the state of California in the US are leading the way.
 
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