Residency is an important factor in determining taxability of an individual. If an individual qualifies as a tax resident of a particular country, he is generally taxed on his global income in that country. The residency in a particular country is determined by rules that include physical presence, domicile and citizenship as may be prescribed under the domestic tax laws of different countries.

The individual who travels frequently and works in cross-border locations may sometime face a situation of ‘dual tax residency’. Dual tax residency means acquiring tax residency of two countries simultaneously in a particular tax year by satisfying the specified conditions of domestic tax laws of both the countries.