Tax residence

The country whose tax system treats a person as resident, usually decided by days present or personal ties. In most systems it, not citizenship, decides where income is taxed, so a new passport alone rarely changes the bill.

Where you will meet it

Tax residence appears in 2 learning outcomes on the CFA syllabus. A few of them:

• Explain and propose retirement wealth planning that takes account of legal, tax and cross-border issues
  CFA Level III · Private Wealth Pathway

  “Jurisdiction matters when a retiree moves: tax residence governs how withdrawals are taxed.”

• Explain and propose suitable choices about citizenship, nationality and legal residence for private clients
  CFA Level III · Private Wealth Pathway

  “Citizenship and nationality give membership of a state and a passport; legal residence grants the right to live somewhere; tax residence, often based on days present or personal ties, determines where income is taxed, and some legal systems also use domicile.”

Practise it

• Today's practice question One question, with every wrong option explained.
• Free Level I diagnostic test Twelve questions that show which topics to start with.
• Free finance calculators Check your arithmetic on the exam's core formulas.

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