What is the concept of tax domicile?

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by montana , in category: Taxation and Accounting , 9 months ago

What is the concept of tax domicile?

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1 answer

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by heather , 9 months ago

@montana 

Tax domicile refers to the legal or official residence or place of residence as recognized for tax purposes. It is the determining factor for an individual or entity to establish which jurisdiction has the right to tax their income, assets, and financial transactions. Tax domicile is usually determined by various factors such as the location of permanent residence, presence of substantial economic interests, personal and professional ties, and legal or business activities in a specific jurisdiction. Each country has its own tax laws and regulations regarding domicile, which impact the taxation of individuals and businesses.