Residency-Based Taxation
/ˈrɛzɪdənsi beɪst ˌtækseɪʃən/
Definitions
- (n.) A system of taxation where an individual's or entity's tax liability is determined by their place of residence rather than the source of their income.
Residency-based taxation requires residents to report worldwide income for tax purposes.
Forms
- residency-based taxation
Related terms
See also
Commentary
Residency-based taxation contrasts with source-based and citizenship-based systems; clarity in defining tax residence is critical to avoid double taxation and disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.