Tax residence

Hey kiddo, do you know what taxes are?

Well, when you make money - like earning an allowance or getting paid when you grow up - you need to give some of that money to the government. This is called a tax, and it helps pay for things like schools and roads that we all use.

Now, imagine you live in a house with your family. Your house is kind of like a country, and the government is like your parents. When you live in the house and make money, you need to pay taxes to the government (your parents).

But what if you spend some time living in another house in a different country? Maybe you go on vacation or visit grandparents. Well, if you make money while you're there, you might also have to pay taxes to that government (the grandparents).

This is what tax residence means. It's like asking which house you live in most of the time and pay taxes to. If you live in one country for most of the year and make money there, then you are a tax resident of that country.

But sometimes it can be a little tricky because some countries have different rules about who is a tax resident. They might look at things like how long you stay there, or how much money you make.

So, just like you have to follow the rules in your house, you have to follow the rules of the country you live in and pay taxes to. It can be a little confusing, but that's why there are special people called accountants who can help you figure it all out when you grow up.