Who Form 8865 Taxation 2024

Hey guys, it's Andrew Henderson from Nomad capitalist calm in Kuala Lumpur, Malaysia. I wanted to do a little Nomad Capitalist 101 today and talk about a topic that's really important but also really misunderstood. We've talked about it for years, but there is still a lot of confusion and misunderstandings surrounding it. In the world of tax, there are three types of taxation that a country can have other than zero tax. These types are citizenship-based tax country, residential tax country, and territorial tax country. We have done a video on zero tax countries where income is not taxed at the personal and/or corporate level, so if there's zero tax, you don't need to worry much about it. But for countries with tax, how do you determine the type of tax that your country has or the country you want to go to/spend time in? Let's start with the least common type, citizenship-based taxation. Only two countries on Earth have this: the United States and Eritrea. Eritrea, being a tiny war-torn country in Africa, imposes a 2% tax on its diaspora people living overseas. The United States, on the other hand, taxes its citizens worldwide, including their passive income and active businesses. US citizens have to report their bank accounts, corporations, and file tax returns regardless of where they live. Now, let's move to the most common form of taxation, which is residential-based taxation. This means that if you live in a country, you pay tax there, and if you don't live there, you don't pay tax there. Determining residency has become stricter now, with various factors like having a driver's license, being registered to vote, owning a house, or keeping an apartment lease being considered. However, in most developed countries, you can simply move out and live somewhere...