Editing Income tax (section)

=== Residents and non-residents ===
Residents are generally taxed differently from non-residents. Few jurisdictions tax non-residents other than on specific types of income earned within the jurisdiction. See, ''e.g.'', the discussion of taxation by [[Income tax in the United States#International aspects|the United States of foreign persons]]. Residents, however, are generally subject to income tax on all worldwide income.{{efn|The [[Taxation in Germany#Income tax for residents|German system]] is typical in this regard.}} A handful of jurisdictions (notably [[Income tax in Singapore|Singapore]] and Hong Kong) tax residents only on income earned in or remitted to the jurisdiction. There may arise a situation where the tax payer has to pay tax in one jurisdiction he or she is tax resident and also pay tax to other country where he or she is non-resident. This creates the situation of Double taxation which needs assessment of Double Taxation Avoidance Agreement entered by the jurisdictions where the tax payer is assessed as resident and non-resident for the same transaction.

Residence is often defined for individuals as presence in the jurisdiction for more than 183 days. Most jurisdictions base residence of entities on either place of organization or place of management and control.