In this article we will discuss about the tax residence for individuals, companies and others. Residence of Individuals: General: The tax residence of individuals is normally decided on factors that can be determined by external observation. Generally, it is based either on: (a) The "physical presence" in the country or (b) The "facts and circumstances" that prove residence in a [...]
In this article we will discuss about the principles of domestic tax systems. General Principles of Domestic Tax Systems: As early as 1776, Adam Smith prescribed the four principles of taxation in his book on the "Wealth of Nations" as follows: (a) Equity: The tax payable should accord with the ability to pay, or the taxable capacity. (b) Certainty: The [...]
In this article we will discuss about the source of passive income:- 1. Dividend Income 2. Interest Income and Expense 3. Royalty Income and Payments 4. Capital Gains. Dividend Income: General: Dividends are normally understood to refer to a profit share paid out by a company to its shareholders out of retained earnings. For tax purposes, they have a wider [...]