confused about status and taxes
May 26th 2008, 6:32 pm
#1
Just Joined
Thread Starter
Joined: May 2008
Posts: 1
confused about status and taxes
HI
Ive been studying this forum a lot lately and have decided to register etc. I hope someone can help me because ive found myself getting v confused about status and taxes. My family and i are looking to relocate early 2009, i will be recieving interest and other unearned income from outside of Barbados.
If i become a permanent resident ( also the wife and kids) will i have to pay taxes on my worldwide income at the rates specified (first 25k tax free then 15% up to 40k etc). I dont mean to sound stupid but cant we just come and live there and get renewable visas without becoming perm residents?
If this was the case, i presume to avoid paying barbados taxes i would have to spend only 182 days on the island, the rest of the time offshore, is that correct?
I was assuming that world wide earnings were not taxable, and that all that was taxable was earnings remitted to the country you were living in, for example if world wide earnings were say £50,000(200,000 bd$) per annum but you only bought say for round figures 40,000bd$ on to the island then you would pay tax just on the 40,000bds$ not the whole 200,000bd$. Am i mad or just not very well advised?? please help.
Ive been studying this forum a lot lately and have decided to register etc. I hope someone can help me because ive found myself getting v confused about status and taxes. My family and i are looking to relocate early 2009, i will be recieving interest and other unearned income from outside of Barbados.
If i become a permanent resident ( also the wife and kids) will i have to pay taxes on my worldwide income at the rates specified (first 25k tax free then 15% up to 40k etc). I dont mean to sound stupid but cant we just come and live there and get renewable visas without becoming perm residents?
If this was the case, i presume to avoid paying barbados taxes i would have to spend only 182 days on the island, the rest of the time offshore, is that correct?
I was assuming that world wide earnings were not taxable, and that all that was taxable was earnings remitted to the country you were living in, for example if world wide earnings were say £50,000(200,000 bd$) per annum but you only bought say for round figures 40,000bd$ on to the island then you would pay tax just on the 40,000bds$ not the whole 200,000bd$. Am i mad or just not very well advised?? please help.
May 26th 2008, 7:35 pm
#2
Saturday Surfer
Joined: Jan 2008
Location: Hastings, Barbados
Posts: 47
Re: confused about status and taxes
Doesn't sound like you're advised at all.... 
If you're looking for tax/status advice like this you need to speak to an accountant and lawyer with experience dealing with this type of situation. They may be able to help you structure yourself and your income in a tax-efficient manner.
Governments generally don't appreciate people hopping from place to place avoiding taxes, there will be legislation on the books in whatever country you choose to be a 'resident' in, and where you perceive you live. That legislation is designed to ensure you pay taxes somewhere. The 182 day rule works for simple cases but if you are going to pop in/out like that you're asking for trouble.
Good luck!
If you're looking for tax/status advice like this you need to speak to an accountant and lawyer with experience dealing with this type of situation. They may be able to help you structure yourself and your income in a tax-efficient manner.
Governments generally don't appreciate people hopping from place to place avoiding taxes, there will be legislation on the books in whatever country you choose to be a 'resident' in, and where you perceive you live. That legislation is designed to ensure you pay taxes somewhere. The 182 day rule works for simple cases but if you are going to pop in/out like that you're asking for trouble.
Good luck!
