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Difference between resident and non resident?
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Difference between resident and non resident?
Resident vs Non-Resident
Definition
Factors Determining Residency
Taxation
Immigration
Conclusion
Resident and Non-Resident are two terms commonly used in the field of taxation and immigration. The classification of a person as a resident or non-resident depends on various factors such as the duration of stay in a particular place, purpose of stay, etc. Let's discuss the difference between the two in detail.
Definition
- Resident: A resident is a person who has lived in a particular place for a certain period of time and has established legal ties to that place. In taxation, a resident is a person who is subject to pay taxes on income earned within the country.
- Non-Resident: A non-resident is a person who does not live in a particular place permanently or for a long duration. In taxation, a non-resident is a person who is not subject to pay taxes on income earned within the country.
Factors Determining Residency
- Duration of Stay: The duration of stay plays a crucial role in determining residency. If a person lives in a particular place for more than a certain number of days, he or she is considered a resident. The number of days varies from country to country.
- Purpose of Stay: The purpose of stay also plays a vital role in determining residency. If a person intends to stay in a particular place for a long duration or has established ties to that place, he or she is considered a resident.
- Legal Ties: Legal ties such as owning property, having a job, or a bank account in a particular place can also determine residency.
Taxation
- Resident: A resident of a country is subject to pay taxes on income earned both within the country and outside the country. The resident is also entitled to certain tax benefits such as deductions, exemptions, etc.
- Non-Resident: A non-resident is only subject to pay taxes on the income earned within the country. The non-resident does not get any tax benefits.
Immigration
- Resident: A resident has the right to live and work in the country without any restrictions. The resident may also be eligible for certain benefits such as healthcare, education, etc.
- Non-Resident: A non-resident may only be allowed to stay in the country for a certain period of time. The non-resident may also have restrictions on working, studying, or accessing certain services.
Conclusion
The classification of a person as a resident or non-resident depends on various factors such as the duration of stay, purpose of stay, legal ties, etc. The classification has an impact on tax liability, immigration status, and other benefits. It is important to understand the difference between the two to avoid any legal or financial complications.
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Difference between resident and non resident?
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Difference between resident and non resident?
Question Description
Difference between resident and non resident? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Difference between resident and non resident? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Difference between resident and non resident?.
Difference between resident and non resident? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Difference between resident and non resident? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Difference between resident and non resident?.
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