Residence vs Taxation Scope

Summary
Residence and taxation scope are related but distinct concepts. Residence determines where a person lives, while taxation scope defines what income a country can tax.

Main explanation

What is residence

• factual living arrangement
• determined by law
• used in tax context

What is taxation scope

• defines taxable income
• based on residency and source
• independent from nationality

Relationship

• residence influences tax residency
• tax residency defines scope

Worldwide vs source taxation

• worldwide = residents
• source-based = non-residents

Differences across countries

• residency rules
• tax scope
• income categories

What this page does not cover

• tax rules
• treaties
• filing
• planning
• legal advice

References

• OECD Model Tax Convention
• OECD tax residency
• EU taxation