Tax residency: the questions to answer first
Day counts are only the beginning. Learn the residence, tie-breaker and source questions that precede any calculation.
A calculator can estimate a resident employee’s payroll deductions. It cannot decide residence from a passport or a single day-count rule.
Residence tests are multi-factor
Many countries combine physical presence with a permanent home, centre of vital interests, habitual abode or domicile concepts. Some have automatic tests; others weigh facts.
Treaties resolve dual residence
When domestic rules make you resident in two countries, an applicable treaty may provide tie-breakers. Treaty residence and domestic filing obligations are related but not identical.
Source rules still matter
Non-residents may owe tax where work is physically performed or property is located. Equity compensation and bonuses can be allocated over the period in which they were earned.