Country of residence principle

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The country of residence principle is a regulation within international double taxation agreements . According to this, the state in which the recipient of the income is domiciled has the right to tax . This residence principle is independent of the taxpayer's citizenship . This regulation enables people who have the appropriate economic capacity to minimize the tax burden by relocating their main residence to a country with low tax rates . Some countries, including the United States , therefore rely on citizenship for taxation of all world income .

The country of residence principle is criticized because it does not do justice to the social demand "No taxation without parliamentary representation" , which was one of the triggers for the American War of Independence . All residents , including foreign nationals who are not eligible to vote and minors, are taxed, but unlike citizens , they have no right to vote and therefore no say in the amount of taxes.

In the case of legal entities , the place of residence (not the statutory seat, but) is replaced by the place of management, i.e. the center of the business management.

Individual evidence

  1. ↑ Tax evasion: Thousands of US citizens want to return their passports . Welt Online , September 5, 2014; accessed on November 11, 2016
  2. Kurt-Peter Merk: The active right to vote from birth and its political meaning  ( page no longer available , search in web archivesInfo: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF)@1@ 2Template: Dead Link /