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tax residency

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Tax residency refers to the status that determines the country or countries in which an individual or entity is considered a resident for tax purposes. It plays a crucial role in assessing tax obligations, including income tax, capital gains tax, and inheritance tax. Understanding tax residency is essential for compliance with local laws and for optimizing tax liabilities, especially for those with connections to multiple jurisdictions. Factors influencing tax residency typically include physical presence, domicile, and the location of primary economic interests.

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