Residency and citizenship

Residency and citizenship

Resident status of individuals and legal entities plays an important role in the activity, as it was in the country of residence you must pay taxes. Each jurisdiction the right to develop and implement its tax policy and rates of direct and indirect taxes.

The criteria for resident status may vary by country, but usually resident is a private person who carries out in the territory of six months and one day in the fiscal year. Taxes generally are charged to income in the world, but in some jurisdictions tax passes on the territorial principle, ie you must pay taxes on income derived only in a particular country.

In the case of firms resident status should pay attention to the following aspects. The company is considered to be resident in the country, when two conditions are met: 1) the company is registered in a particular country; 2) management of the company is carried out in the same country.

Of course, not always possible to favorably change the country of residence in order to minimize taxes – personal and corporate. For this clause is used often offshore companies with nominee services of local shareholders and directors who can provide your professional adviser.

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