There are some countries who tax rule says if you are working in their country for certain days, you have to pay income tax to them. Meaning you are a tax resident.

My question is, how does the country know I am becoming a tax resident? If one forgets to pay it voluntarily after staying for a certain period and attempts to leave the country, it’s not like their border officer will catch you at the departure kiosk and charge you the tax, right?

For example, one can enter the country as a tourist and then stay/travel/working long enough to become a tax resident and not overstay. Does the border office somehow notify the government of his entry and then the timer starts ticking?

Does it work on a honor system in general? How do they enforce it?

  • PingasIndustriesB
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    1 year ago

    It’s a grey area. Countries have laws against foreigners working on tourist visas to protect the domestic workforce. Most really do not give a crap unless you are working there on a digital nomad visa long enough to become a tax resident, and taking in enough cash that tracking down your potential taxes is worth their time