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What are dual resident companies?

Companies which have existence and residents in two different countries with two different jurisdictions for tax purposes are known as the dual resident companies. For eg., Company A is resident in jurisdiction X but because it was incorporated in country B all the companies registered and incorporated in its jurisdiction Y are considered as resident company and tax residents.  As the company A was incorporated in the jurisdiction of Y, it might have the place of effective management in the jurisdiction of Y. As per the laws in this jurisdiction it treats all the firms with POEM being considered for the jurisdiction X as local tax residents.  It is a common strategy of companies to have standard legal regulations in different jurisdictions to be considered as one.

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