Just like US states, many countries employ a statutory residency test based on day counts. For global citizens, monitoring time spent in these jurisdictions is critical to avoiding unintended tax liability.
While domicile and "center of vital interests" are primary factors, most major economies have a "backstop" rule: if you are physically present for more than half the year (typically 183 days), you may be deemed a tax resident regardless of your permanent home.
Country-Specific Rules
The UK uses a formal Statutory Residence Test (SRT). It is one of the most strictly defined day-count tests in the world.
- Automatic Residence Test: You are automatically a UK resident if you spend 183 days or more in the UK in a tax year.
- Automatic Overseas Test: You are generally non-resident if you spend fewer than 16 days in the UK (or 46 days if you haven't been resident for the previous 3 years).
- Sufficient Ties Test: If you fall between these automatic tests, your residency depends on the number of "ties" you have (family, accommodation, work, 90-day history) combined with your day count. The more ties you have, the fewer days you can spend in the UK before becoming a resident.
Canada determines residency primarily based on significant residential ties (home, spouse, dependents). However, there is a strict statutory rule for those who might otherwise be considered non-residents.
- The 183-Day Rule (Sojourning): If you "sojourn" (temporarily stay) in Canada for 183 days or more in a calendar year, you are a Deemed Resident of Canada for the entire year.
- Deemed residents are subject to Canadian tax on their worldwide income.
An individual is generally an Australian resident for tax purposes if they reside in Australia. However, there are three statutory tests that extend this definition.
- The 183-Day Test: You are a resident if you are actually present in Australia for more than half the income year (183 days), continuously or intermittently.
- Exception: You may be exempt if you can prove your "usual place of abode" is outside Australia and you have no intention to take up residence in Australia.
Recent proposed changes (modernizing tax residency) aim to introduce a "bright-line" test where being physically present for 183 days would automatically make you a tax resident, simplifying the current rules.
Why Tracking Matters
In all these jurisdictions, the burden of proof lies with the taxpayer. If an audit occurs, you must provide credible evidence of your location for every day of the year. Travel tickets and credit card receipts are often insufficient because they don't prove where you were on the days between transactions.
The Domicile365 App uses GPS, Wi-Fi, and cellular data to create an immutable log of your location, providing the high-quality evidence needed to defend against residency audits in the US, UK, Canada, and Australia.
Track Your Global Days
Don't let a miscalculated day count trigger a tax bill in a foreign country.
Use Domicile365 to track your days in the UK, Canada, Australia, and the US.
