The implications of tax residency for businesses include:
- Tax Rates: Different countries have different corporate tax rates. Being a tax resident in a country with lower tax rates can result in significant savings. - Tax Treaties: Tax treaties between countries can help businesses avoid double taxation and benefit from reduced tax rates on certain types of income. - Reporting Requirements: Tax residency determines the tax filing and reporting requirements that a business must follow. Non-compliance can result in penalties and interest charges.