country of residence meaning This is a topic that many people are looking for. bluevelvetrestaurant.com is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, bluevelvetrestaurant.com would like to introduce to you Permanent Residency Vs. Tax Residency. Following along are instructions in the video below:
“Guys. This is chris from offshore secrets and in this video. I want to explain explain the difference between a legal residency and your tax residency. I see this is of the mistakes that people make all the time they confuse a legal residence permit with your official tax residency.
Those two things are very different in the eyes of your tax authorities and in the eyes of jurisdictions. So your what is the legal residency. A legal residency. You could also call it a residence permit is a an allowance a permission to stay in a country for more time than a usual tourist visa would allow you in many countries of the world.
If you have a passport from a tier. One country being a european country or the united states or canada australia one of those countries..
Then you can just buy a ticket fly into the country got for example thailand or maybe. Japan or brazil. And you can stay up to six months on a tourist visa and if you want to stay longer now you need to look at getting either a different type of visa or getting a permanent residence visa permanent residence permit and this will allow you to stay in that country longer than those six months and in many countries for example. Panama or paraguay or a couple of these countries.
It s very simple to get this permanent residence. Visa and once you have it they don t even require you to spend any significant amount of time in the country to maintain this allowance this this permission to stay in that country. So you can get a visa and you can leave and then a couple of you know month four years later you can come back. And you can still stay that permission is still valid and now on the other side.
We have your tax residency and the tax residency is the place that can claim a percentage or maybe the complete burden of your personal income tax and this is something that generally requires you to spend a significant amount of time in that country. And you can have a permanent residence..
Without being a tax resident. Because you haven t spent enough time in the country and in many cases. We want to avoid becoming a tax resident and this is generally the case for high tech jurisdictions. This is the case for the country that you probably left in order to start on this journey and in other cases.
We actually are trying to become a tax resident. This is usually the case for our second residence a territorial base taxation system now we re trying to become a resident and get official documents proving that we are residence with those documents we can then go to maybe our home country and we can prove them listen. I am no longer resident with you guys i now pay my taxes here. And what it generally takes in order to become an official tax resident is a minimum amount of time spent in the country and for most countries.
This is about six months. There s a sort of 183 day rule really applies when it comes to determining your tax residency and as long as you can t really prove..
And you have no documentation and you have no papers that you are a tax resident. Really it s difficult to claim that you are one and generally the highest level of proof is a so called tax certificate or a certificate of tax residence and most countries give you this piece of paper. Only after six months. There are some countries.
Where this process can be sped up for example cyprus under the non dorm room. You can get one of those papers after two months. But in general it takes about six months. So if you go to a country and you get your permanent residence permit.
But for some reason you need to really make sure that you are a tax resident well most of the time you are required to spend about six months in that country file maybe a tax return and then you will get your tax certificate. And now you can take that piece of paper and you can go to a different tax authority from maybe your home country and you could can give it to them..
And you can prove beyond a reasonable doubt that you are actually a tax resident now of a different country this will enable you for example to make use of double taxation treaties to claim. Withholding tax and a couple of other things. I hope. This has made it clear.
What the difference is between those two concepts and you can avoid the typical mistakes. Which is people are a resident of nowhere for tax reasons or attack or still a tax resident of their home country. But they think they ve escaped the tax residency. There because they have gotten a legal residence somewhere else these two things are not the same that s pretty much it i hope you enjoyed this video.
If you did subscribe to this channel for more content along those lines and i hope to see you guys in the ” ..
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