Where am I liable for tax?

One question that immediately arises when you work internationally relates to the countries in which you are liable for tax (i.e. have to pay tax). 

How do you know where you are liable for tax? 

Each country has its own regulations. Depending on the country, your tax liability typically depends on the following factors:

• Whether you are self-employed or employed in that country and what your level of income is;
• Whether your main place of residence is in that country;
• Your nationality: according to the laws of some countries, citizens must pay tax on their income in their home country, even though they neither work nor live there.

In Austria, a distinction is made between unlimited and limited tax liability:

• Unlimited tax liability means that Austria may tax a person's entire worldwide income. Most countries have regulations according to which a person's country of residence has the right to tax their entire worldwide income. The person is said to be "resident for tax purposes" in that country.
• Limited tax liability generally applies to people who are not resident in Austria. Their obligation to pay income tax is limited to specific income that is associated with Austria.

If you work and live in different countries, two or more countries may theoretically be entitled to tax your income. Many countries have concluded double taxation agreements so that gainfully employed individuals do not have to pay tax on their income twice. See the chapter on tax liability in multiple countries.

To do: If you are working across borders, you should find out about the tax regulations in all of the countries you work in and, if necessary, seek advice from a tax consultant. 

The following chapters will give you an overview on tax liability in

• Austria, and
• multiple countries.