Tax residence in Germany

All tax resident individuals are taxed on their worldwide income, regardless of the source. This would include salary, dividends, etc. earned from one's limited company. Generally, individuals are deemed to be tax resident if they are physically present in Germany for more than six months in any one calendar year or for a consecutive period of six months over a calendar year-end. This ruling is applied retrospectively so presence in Germany from 1 March to 30 November, for example, would make one a German tax resident and therefore subject to German tax on the worldwide income for the entire period rather than just from the beginning of the seventh month.^{[citation needed]}

An individual can also be deemed tax resident if they acquire an abode in Germany. This can include renting, as opposed to purchasing, a property but only if the duration of the lease is deemed to be more than temporary. For this reason, to avoid German tax residency, short-term (such as three months) should be taken out wherever possible.^{[citation needed]}

Non-resident individuals are taxed on German-source income only. In the case of salary and benefits from your limited company, the source is German since the duties of the employment are being performed in Germany. However, dividends from your limited company (assuming this is not deemed to have a permanent establishment in Germany: see below) would be from a non-German source regardless of where the dividends are received. There is, therefore, scope for tax mitigation here if one does not become a German tax resident (although non-German taxes may also need to be considered).^{[citation needed]}

Tax residence in the Russian Federation

In Russian Federation all tax resident individuals are taxed on their worldwide income, regardless of the source. Individuals are deemed to be tax residents if they are physically present in Russian Federation for more than 183 days during consecutive period of 12 months. The period of presence in Russian Federation is not interrupted in case individual is out of the country for less then six months for educational purposes or for medical treatment. Foreign servants and sivil servants that were sent abroad for work purposes are deemed tax residents no matter how long they really are present in Russian Federation.^[13]

Taxation Law - Resident or Non-Resident for Taxation Purposes

Date: березня 07, 2011

Authors: Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Scott Gray LPAB, Grad. Dip. Legal Practice

Residence and Source

Australian residents must declare all ordinary and statutory income no matter where in the world it is derived while non residents are only assessed on Australian sourced income. The term “Resident” is defined by section 6 of the Income Tax Assessment Act 1936 as;

(a)  a person, other than a company, who resides in Australia and includes a person:

(i)  whose domicile is in Australia, unless the Commissioner is satisfied that his permanent place of abode is outside Australia;

(ii) who has actually been in Australia, continuously or intermittently, during more than one‑half of the year of income, unless the Commissioner is satisfied that his usual place of abode is outside Australia and that he does not intend to take up residence in Australia; or

(iii) who is:

(A) a member of the superannuation scheme established by deed under the Superannuation Act 1990 ; or

(B) an eligible employee for the purposes of the   Superannuation Act 1976 ; or

(C) the spouse, or a child under 16, of a person covered by sub-subparagraph (A) or (B); and

(b)  a company which is incorporated in Australia, or which, not being incorporated in Australia, carries on business in Australia, and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia.

The term “Non resident” is defined in the Income Tax Assessment Act 1936 as a person who is, quite simply, not a resident of Australia. What this does mean though is that the definition for non residency is exhaustive so a person must be either a resident or a non resident. Importantly, nationality and citizenship are not key indicators of residency. Where a person resides is a question of fact and degree and assessed on a case by case basis. Some factors to consider are;

1. Physical presence in Australia during the income year;

2. Frequency, regularity and duration of visits to Australia; 

3. Maintenance of a place of abode in Australia during absence;

4. Correspondence of habits and mode of life before and after change of residence (club memberships etc)

Domicile

It may be necessary to look into the inclusionary limbs of section 6 of the Income Tax Assessment Act 1936 since a person whose domicile is Australia is deemed to be a resident unless his permanent place of abode is outside Australia. Domicile of origin is acquired by implication of law at birth by adopting the domicile of the father or mother.

Domicile of choice is where the person has a fixed place they intend to return to when ever absent. To quire a domicile of choice a person must make a new home in the new country with the intention of making it his home indefinitely. Intending to reside for a fixed period will not suffice.

Source or Residency

All of these matters are important as residence and source normally determines whether a person is a dual tax resident of competing jurisdictions or whether a tax resident of only one. This area of the law comes into play when either individuals or other entities earn or derive income from more than one jurisdiction.

International Tax

International tax considerations are often complex and time consuming so that the facts and the law including; Double Tax Agreements (DTAs), Mutual Legal Assistance Treaties and Information Exchange Agreements can be properly applied. At LAC Lawyers this is an area that we often advise on given the increasing sophistication of our clients.

Scheduler system- A tax system used in the United Kingdom in which income levels are divided into different classifications for determining tax rates. Each income classification represents a different source of income such as business profits, capital gains, employment income, entitlements, that is taxed according to the specific provision of the Tax Act to which it applies. Read more: http://www.businessdictionary.com/definition/schedular-system-of-taxation.html#ixzz2BOk4RWFv

Schedular system of taxation The tax system divides income into different categories known as schedules. These are based on the underlying source of income. Schedules may be further subdivided into cases. Each schedule has its own rules for calculating its taxable income. Employment income, for example, is taxed under Schedule ... Found op http://www.encyclo.co.uk/local/20949

Schedular system of taxation

The Schedular system of taxation is the system of how the charge to United Kingdom corporation tax is applied. It also applied to United Kingdom income tax before legislation was rewritten by the Tax Law Rewrite Project. Similar systems apply in other jurisdictions that are or were closely related to the United Kingdom, such as Ireland and Jersey.

Under the source rule, tax is levied on a source of income or gain only if there is a specific provision taxing that income or gain. The levies to tax on income were original set out in Schedules to the Income Tax Act. In the case of United Kingdom corporation tax, they remain for companies charged to that tax, and in the case of United Kingdom income tax, many, but not all remain.

In the United Kingdom the source rule applies. This means that something is taxed only if there is a specific provision bringing it within the charge to tax. Accordingly, profits are only charged to corporation tax if they fall within one of the following, and are not otherwise exempted by an explicit provision of the Taxes Acts:

The Schedules

	Scope
Schedule A	Income from UK land
Schedule D	Taxable income not falling within another Schedule
Schedule F	Income from UK dividends
Chargeable gains	Gains as defined by legislation that are not taxed as income
CFC charge	Profits made by controlled foreign companies where no exemption applies

Notes:

1. The heads of charge listed above are mutually exclusive. No income or gain can fall within more than one head of charge.

2. In practice companies do not get taxed under Schedule F. Most companies are exempted from Schedule F and there is a provision for those companies which are taxed on UK dividends (i.e. dealers in shares (stock)) that removes the charge from Schedule F to Schedule D.

3. A controlled foreign company ("CFC") is a company controlled by a UK resident that is not itself UK resident and is subject to a lower rate of tax in the territory in which it is resident. Under certain circumstances, UK resident companies that control a CFC pay corporation tax on what the UK tax profits of that CFC would have been. However, because of a wide range of exemptions, very few companies suffer a CFC charge.

4. There used to be a Schedule B and a Schedule C that applied to companies, but these have now been merged with Schedule D. Schedule E, which was repealed in 2003, only applied to individuals.

5. Authorised unit trusts are not liable to tax on their chargeable gains.