Residence of Companies

The residence of a company refers to where it is legally considered to be based for tax purposes. This is typically determined by where the company's management and control occurs, such as where the directors meet and make decisions. In many countries, a company is taxed based on its residence, which means it pays taxes in the country where it is considered a resident. Understanding a company's residence is important as it affects its tax obligations and regulatory requirements. This concept helps maintain clarity in international business operations and compliance with local laws.