Treaty Tie-Breakers
If, for the purposes of a tax treaty, you are resident of one country but also a resident of the United States you will need to use tie-breaker rules to work out a single country of residence. The 2006 US Model Treaty states that this should be achieved by examining the following factors in the following order:
- The location of your permanent home: You have a permanent home in the US if you can be said to reside in it, have a room continuously available, use it to store personal property, have an office in the home or use it as an address for the purposes of a driving licence or insurance. Certain treaties consider the question of the individual’s family life in order to answer this question.
- The centre of your vital interests: This is answered by looking at the location of your major personal, economic and community interests.
- Your habitual abode: This is answered by looking at where you spend most of your time during the calendar year.
- Your nationality: This is determined by your citizenship or state of nationality.
Blacktower, for cross-border tax planning
The specialist financial advisors at Blacktower can help you with all aspects of your cross-border tax planning, including issues relating to your residency status, FATCA, FBAR and your pensions and retirement accounts.
For more information contact us today.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Investment advice and investment advisory services offered and provided through Blacktower Financial Management US, LLC. This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, tax advice, tax recommendations, investment recommendations or investment research. You should seek advice from a professional before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.