Corporate tax residence does not follow one universal test. Depending on the jurisdiction, relevant connecting factors may include incorporation, statutory seat, place of management or other domestic-law criteria. LEXONYX maps the underlying facts and coordinates the jurisdiction-specific analysis.
A founder relocates — and it may look like a personal tax question. In practice, the move can change facts relevant to company management, CFC exposure, PE-risk and banking. Whether legal or tax consequences follow depends on the rules of the jurisdictions involved and any applicable treaty.
We map where directors and owners live, where strategic decisions are made, who controls accounts and contracts, how authority is exercised and how that picture is evidenced. A qualified tax specialist then applies the rules of the relevant jurisdiction to that factual map.
There is no single international management or residence test. The facts about who actually manages the company, where relevant acts are performed and how authority is exercised must be tested against the law of each relevant jurisdiction.
If income, authority or management functions are exercised from another country, the structure may require a fresh residence, CFC and governance analysis. Incorporation remains relevant where the applicable law makes it relevant.
A tax authority applies its domestic rules and, where relevant, an applicable treaty to the actual facts. Corporate records are evidence of the structure, but they do not replace the underlying management reality.
Where the company is actually managed, which functions and decisions are carried out in each country, who exercises authority and how those facts are evidenced at process and document level.
Ownership, control, entity and income facts are mapped to identify CFC issues requiring jurisdiction-specific tax confirmation.
Flows, ownership, purpose and factual indicators relevant to DTT, WHT, beneficial-ownership and anti-abuse analysis are mapped for jurisdiction-specific specialist confirmation.
Whether corporate documents align with the real model for decision-making, delegation and control.
Whether the ownership logic, allocation of functions and profit diverge from how the group actually operates.
Tax residency and CFC rarely exist in isolation: the same facts often affect permanent establishment risk, indirect tax and banking review.
The company earns the main income but has no real role, team or management centre.
Residency becomes vulnerable if the real decision-makers and control process are in another country.
Formal documentation says one thing, but delegation, approvals and contract signing operate differently.
The owner’s control and the role of foreign companies create personal tax exposure that was not considered in advance.
The purpose is to align the factual and governance model so that the relevant tax position can be confirmed under the applicable current rules.
There is no single universal test for corporate tax residence. Depending on the jurisdiction, relevant connecting factors may include incorporation, statutory seat, place of management or other domestic-law criteria. LEXONYX maps the underlying facts; the applicable jurisdiction-specific test is then applied or confirmed by the relevant tax specialist.
CFC rules are domestic anti-deferral regimes. Whether they affect an owner depends on the law applicable to that owner, including the statutory control, entity, income and exemption tests. LEXONYX maps ownership and control facts; jurisdiction-specific CFC conclusions are provided or confirmed by the relevant tax specialist.
Corporate documents describe formal roles and authority. Actual management concerns what is done in practice, but the legal significance of those facts depends on the residence or management test used by the relevant jurisdiction. The analysis therefore starts with the real decision and management process and then applies the correct domestic or treaty test.
Residency and CFC rarely exist in isolation. The same facts — where people are, who makes decisions and how money moves — also affect permanent establishment risk, indirect tax and banking review. The tax position therefore cannot be assessed separately from the whole group architecture.
Describe the jurisdictions, ownership, who makes decisions and how flows are arranged. We will identify potential risks relating to residency, CFC and the connected elements of the model.
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