What is the difference between residents and non-residents? From the point of view of tax legislation - the period of residence in the territory of a country during a calendar year.
Why is residency status so important? From the point of view of the tax authorities of all countries of the world, even the atoll of Vanuatu and blessed Burundi, a resident is a source of replenishment of the budget of the region of his residency.
Resident status
In order for a person to be recognized as a resident of the country, which means that he pays his taxes only in Russia, for example, there are a number of requirements.
Previously, a resident individual was recognized as such when he lived in the country during the calendar year. Accordingly, a person who did not live in the country for a whole calendar year was considered a non-resident. The new Tax Code introduced a condition of 183 days in the country.
If a person has been living in the country for six months, then he is a resident. This works even if a person goes to work on an offshore drilling platform on the continental shelf of Cuba, for example, for a longer period. He is still a resident of Russia. But this only concerns offshore oil production. If he works in Cuba as a resident of our intelligence, and officially as an architect, then our tax law does not consider him a resident.
This is very important, since the Russian personal income tax is the smallest in Europe.
Features of residence in the laws of other countries
Everything is simple with us - 183 days and a point. And in the UK it’s more complicated. Apparently, she has more foreign residents than in other countries, so the status required additional specification.
First, the British will check the world residency of the person in doubt. If it turns out that relations with some other country in the world are stronger than with foggy Albion, then it is not a resident. This is a convenient way, since such a person with strong ties at home can live in England only 46 days a year.
The connection is established by the presence of real estate (a family castle or a mansion near Hampton Court, for example). In the mansion, the resident must spend the night regularly. Another option is family and work ties. With a child in England, the parent must spend at least 60 days a year. So in this country, a resident is a traveler with family real estate, children and a dog. In a word, flexibly and variably.
And in some African countries the word "resident" does not apply to its citizens. Only to foreigners, but living in this country more than 183 days a year.
Value
By the way, the word "resident" is a Latin borrowing. It came from residentis - "sitting" or "staying in place." In the Middle Ages, this term meant a foreign diplomat. The resident was also called the elected representative of the colony in the proctorate. But the most intriguing value is the spy scout, who oversees the work of the intelligence network behind enemy lines.
The fate of the resident and some tricks
A resident is required to pay taxes on income received from all sources and in the country of permanent residence, and in other countries, and even from income received from offshore banks (only in Russia). There is such an exotic in international offshore planning - “ship-bank-state”. They say they swim somewhat along the Bermuda Triangle. About ten years ago, such banks were still bought and sold. It is clear that for one or two operations, until the tax authorities of the counterparty countries sort it out, but still.
Accordingly, a resident of Russia will pay taxes in Russia even from dividends on shares of Cypriot companies in Russia. And could pay twice - both in the Russian Federation, and in Cyprus. To avoid this doubling, double taxation agreements have been concluded between many countries .