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
For virtually every other jurisdiction, natural persons pay tax where they live, not where they source their income.

If I happen to work for a foreign corporation, I don’t get to skip paying tax.

>>daniel+o3
Not true. This is only true for US which taxes your global income.

Most of the world taxes only income earned in that country.

> If I happen to work for a foreign corporation, I don’t get to skip paying tax.

Sure, because you earned it your country, and not in the country of domicile of foreign corporation.

EDIT: Correction, I see now that most countries do tax worldwide income, just that they have DTA so you offset taxes paid abroad.

>>shivas+u5
We (the UK) have a very extensive set of double taxation treaties too. The point of non-dom status is that it doesn't even matter if your earnings were taxed elsewhere: they're still not liable in the UK.