• COVID-19 has left visitors to other countries indefinitely stranded and potentially subject to another nation’s taxes.
• Most countries determine the tax residence status of visitors based on the number of days spent in the country.
• The U.S. issued guidance offering relief to visitors who must extend their stay in the country as a result of travel disruptions caused by the COVID-19 pandemic.
• While some countries have issued guidance addressing the COVID-19 pandemic’s impact on tax residency determinations, several others including Canada, have not.
• Andersen can help you make an informed decision regarding your tax residency status and take steps to avoid
unnecessarily becoming subject to another nation’s taxes.
Overview – Global Tax Residence
Most countries tax visitors based on their residence status which will often be determined by tests calculated on the number of days the individual spends in a country. With the current COVID-19 pandemic, many countries are relaxing these rules to allow for the fact that individuals may have to remain in a particular country for medical reasons or due to travel restrictions. However, many nations have not yet provided clear guidance.
Compliments of Andersen Tax LLC – a member of the EACCNY.