zlacker

>>fortra+(OP)

  > a centuries-old tax loophole, abolished in April, that catered to the global rich. The nondomiciled—or non-dom status, as it is known—allowed foreigners living in the U.K. to pay tax only on what they earned domestically. Profits made abroad were ignored unless brought into the U.K.

I don't understand. Why is this a loophole? Why is money earned abroad and kept abroad taxable not by a foreign government but by the UK government?

>>The_su+Z1
It’s standard in Europe and many other countries to tax their “tax residents” on their worldwide income. The tricky part is that sometimes that external income is also taxed at source, but this is usually taken care of by tax treaties, which means that you pay the higher of the tax rates, but only once.

>>macleg+I3
I live in europe, and I would be breaking the law if this would true. Would love to see some citations.

It's only the US which taxes worldwide income. It's not true for rest for the world.

>>shivas+E5
You may be breaking the law. It’s common to owe taxes on world wide income in your country of tax residence. I imagine this is the same across the EU but open to be corrected

https://taxsummaries.pwc.com/ireland/individual/taxes-on-per...

>>aosaig+o6
Ok, so it's only US and Ireland and maybe a few others that tax worldwide income.

Still the common norm is that PIT is only levied on income earned in the country.

>>shivas+y6
I believe most, if not all, European countries tax residents on worldwide employment and capital income.