OECD
27 November 2024
What is Country-by-Country Reporting (CbCR)?
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Your tax residence status is, potentially, one of the most complex aspects of global tax to get right.
Fortunately, we know someone who can make short work of it while you get on with something more interesting!
If you’ve heard the term tax residence and think that it’s linked to having a secondary residence then you can be forgiven for the subject confusing you. The two can be connected but they’re also their own separate entities, plus, every country has its own rules and regulations about what taxes you have to pay. And if you have a residence in more than one territory to throw into the mix then it’s very easy to get yourself wrapped up in an expensive tax-shaped knot.
That’s why Tax Natives have experts around the world who specialise in residence tax. They’ll be familiar with all the tax rules and regulations relating to a residence (or more than one residence) in your chosen territory. They’ll ensure that you comply with all your tax commitments but they’ll also know which, if any, exemptions and deductions that you’re entitled to. To speak to one of these tax gurus just hit the button below and we’ll make the relevant introductions.
International expertise
Let’s address the elephant in the room first: The difference between the terms tax residence and second residence.
Tax residence refers to the country or jurisdiction where you or your company are required to pay taxes.
Your determination of tax residence is based on various factors such as the length of stay, the purpose of stay, source of income, and other relevant criteria. In some countries, you only have to spend a single day there to qualify, whereas other countries have laws in place to prevent you from being a tax resident for a number of years. But where it gets really confusing is having a second residence doesn’t automatically make you a tax resident there, you often have to apply for that status.
Got a headache yet?
Owning a second residence means you’ll likely have to pay property taxes on both your primary and secondary properties. These taxes can vary depending on the location of each property, and the assessed value of them.
If you decide to rent out your second residence, you’ll need to report any rental income on your tax return. Depending on where your second residence is located, you may be subject to additional taxes such as occupancy tax, transient occupancy tax, or rental income tax.
If your second residence is located in a different country, you may be subject to foreign tax laws. These laws can be complex and vary depending on the country, so it’s important to consult with a tax professional who has expertise in international tax law.
If you decide to sell your second residence, you may be subject to capital gains tax. This tax can vary depending on how long you’ve owned the property, whether you’ve made any improvements to it, and other factors.
If you pass away and leave your second residence to your heirs, they may be subject to estate taxes. The rules governing estate taxes can be complex, and the amount of tax owed can vary depending on the value of the property and other factors.
Do any of these scenarios sound horribly familiar? Don’t worry, we can take that load off your shoulders. We have a trusted network of tax advisors in all four corners of the globe whose bread and butter is arranging and dealing with tax residence status. Get in touch and solve all your residence tax problems today.
Tax residence and domicile status are linked because both concepts are related to the taxation of individuals in a particular country.
In general, a person’s tax residence determines which country has the right to tax their worldwide income. If a person is considered a tax resident in a particular country, that country will typically tax their income regardless of where it was earned.
Non-domicile (Non-dom) status, on the other hand, is a separate status that in certain countries, such as the United Kingdom, might result in other implications. For example, in the UK, this regime might allow an individual who is not domiciled in the UK to only pay tax on UK income or gains that are earned in the country or remitted to the UK.
However, even if a person is not domiciled in a country, they may still be considered a tax resident if they meet certain criteria, such as spending a certain amount of time in the country or having a permanent home there. In this case, the person would be subject to the country’s normal tax rules, including those that apply to worldwide income.
So, while non-dom tax can be a way for individuals who are not domiciled in a country to reduce their tax liability, their tax residence status will ultimately determine whether they are subject to this regime or not.
Think of us as a tax dating service (stay with us on this). We swipe through our network of international tax consultants and find one that’s a perfect match for your unique tax situation.
Whether you’re of retirement age and are looking to invest your pension, a property magnate expanding your portfolio into new countries, or a stakeholder in a business that is opening up a satellite in a new location, our international tax advisors can help you with the tricky business of abiding by local tax laws.
We’ll strip away all the jargon and make the world of international tax feel much more intimate. A match made in international tax heaven, if you will. Find out more about your tax destinations and jurisdictions using the map below.
View global adviser mapMEMBERSHIP LEVELS —
The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
Become a curator
TAX NATIVES: CURATOR — CuratorThe Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. |
Become a creator
TAX NATIVES: CREATOR — CreatorThe Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content. There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee. |
Become an adviser
TAX NATIVES: ADVISOR — AdviserThe Adviser is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives. The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page. That's cool. However, the Adviser will be eligible to pay the full monthly membership fee. |
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Initial admin fee | £250 Free | £250 Free | £250 Free |
Minimum membership term | 12 months | 12 months | 12 months |
Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No | YesCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
Managing and updating your jurisdiction page |
Yes |
No |
No |
NATIVE
TAX NATIVES: CURATOR —
The Curator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
However, the Curator has additional responsibilities. They are tasked with the responsibility of managing and updating one of the jurisdiction pages.
There is only one Curator membership available for each jurisdiction.
Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.
Initial admin fee | £250 Free |
Minimum membership term | 12 months |
Article contentCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
Managing and updating your jurisdiction page | Yes |
TAX NATIVES: CREATOR —
The Creator is a fully-fledged member of the Tax Natives team. As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
However, the Creator has additional responsibilities. They commit to their other Natives that they will produce at least one piece of quality content each quarter – whether an article, video or other valuable content.
There are multiple Creator memberships available for each jurisdiction. Where a Curator fulfils their commitments then they receive a 100% discount against their monthly membership fee.
Initial admin fee | £250 Free |
Minimum membership term | 12 months |
Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
YesCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
Managing and updating your jurisdiction page | No |
TAX NATIVES: ADVISOR —
The Adviser is a fully-fledged member of the Tax Natives team.
As such, they are capable of making introductions to other Tax Natives and are also able to take leads from their fellow Natives.
The Adviser Native is a care-free soul and has made no other commitments to his fellow Tax Natives to generate content or curate a jurisdictional page.
That's cool.
However, the Adviser will be eligible to pay the full monthly membership fee.
Initial admin fee | £250 Free |
Minimum membership term | 12 months |
Content creationCreator and Curators must create at least one piece of original, quality-approved content each quarter. |
No |
Managing and updating your jurisdiction page | No |
If you want to know more about Tax Natives membership, getting tax residence advice, or if you’d like to give a virtual high-five to a Tax Native, drop us a line and we’ll get back to you.
OUR MISSION —
Tax Natives is an international tax network that connects taxpayer clients with qualified and regulated tax advisers, from one jurisdiction to another. But we’ll let Andy explain – he’s good at this stuff.
Tax Natives is an international tax network that connects Explorers (taxpayer clients) with Natives (qualified and regulated tax advisers) from one jurisdiction to another.
Select the ‘Ask a question button located on the top of each page and follow through the process to compose your question
Once your question is confirmed and your account is set up, navigate to your user dashboard to view the message exchange between you and your Tax Native.
Each Tax Native has to accept a question from an Explorer before a conversation can begin. Once the Tax Native has accepted your question, a quote will be submitted for approval through the messaging portal.