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HMRC internal manual

International Exchange of Information Manual

From
HM Revenue & Customs
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Reportable Information: Reportable Account Holders: Residence

Reportable Information: Reportable Account Holders: Residence

Individuals

In most circumstances, an individual will be tax resident in the country (or other jurisdiction) where they live and work.  If an individual files a tax return or pays tax in a country, including direct payment of employment taxes, then they are likely to be a tax resident there.

However, in special cases where an individual has ties to more than one jurisdiction that individual may be ‘dual resident’, a tax resident of more than one country or jurisdiction.  For example, the USA, always treats their citizens as tax resident regardless of where they are living.  This means that a US citizen is always a US tax resident, even if they are living and working in the UK and also UK tax resident. Where an individual is tax resident in more than one Reportable Jurisdiction then any accounts will be Reportable Accounts for each jurisdiction where they are tax resident.

If an individual is not certain where they are tax resident then they should refer to HMRC guidance or ask their tax adviser.

Entities

In most circumstances, an entity will be tax resident where it is incorporated and is managed and controlled (although this will depend on the domestic legislation of that jurisdiction).

If the entity is not managed and controlled in the same place that it is incorporated then the entity may be ‘dual resident’, a tax resident of more than one country or jurisdictions.

A Reportable Entity also includes entities that are typically tax transparent (partnerships, trusts, etc).  For reporting purposes, an entity will be held to be ‘tax resident’ in the jurisdiction in which its place of effective management is situated, e.g. a partnership managed and controlled in the UK will be ‘tax resident’ in the UK even though the taxable persons are the partners rather than the partnership itself.

If an entity is not certain where they are tax resident then they should refer to HMRC guidance or ask their tax adviser.