10.04 – Tax residence of Entities

In most circumstances, an entity will be tax resident where it is incorporated and is managed and controlled (although this will depend on the domestic legislation).

If the entity is not managed and controlled in the same place that it is incorporated then, the entity may be ‘dual resident’, a tax resident of more than one country or jurisdictions.

For the Implementation of International Tax Compliance Regulations, a reportable entity also includes entities that are typically tax transparent (partnerships, etc.). For reporting purposes, an entity will be held to be ‘tax resident’ there even if the law of that country or jurisdiction does not treat the entity as a taxable person, e.g. a partnership managed and controlled in the UK will be ‘tax resident’ in the UK even though the taxable persons are the partners rather than the partnership itself.

If an entity is not certain where they are a tax resident, then they should refer to HMRC guidance or ask their tax adviser.