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What is remittance and arising basis with regard to tax?

From here:

Arising basis

A UK resident, ordinarily resident and domiciled person will be taxed on what is known as the arising basis. This means that all of their income and gains will be taxed in the tax year when they are received.

Remittance basis

A person who is not a UK domiciliary can choose to have their non-UK income and gains taxed in the UK only to the extent that they are brought into or enjoyed in the UK. These are called ‘remitted’ income and gains. Income and gains made abroad which are left abroad are called ‘unremitted’ income and gains.

Why do the two different rules exist? Besides just understanding the definition and rules, are there any helpful guides or tips on ways to use the laws and rules most efficiently?

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What country are you looking this for? – Dheer Dec 8 '11 at 10:47
I am looking to understand the concept. No particular country. – Suminda Sirinath S. Dharmasena Dec 8 '11 at 10:56

Arising basis (seems to be) what we call in the US "world-wide income taxation". It means that you're taxed on the money you have actually received, and the "all of their income" means that the treatment is the same for all the income, whether in or out of the country. This is similar to the taxation of US citizens and residents.

"Remittance basis" is the method to account income for NON-residents. In the UK, those who are not UK residents for tax purposes, only pay income tax on moneys received in the UK or brought into the UK. This is slightly similar to the taxation of non-residents in the US, but not quite the same.

As to which choices to make, which choices apply to you, and how to do the accounting, reporting and tax payments - you should talk to a UK tax accountant.

This in fact is very particular, these terms are specific for UK taxation rules.

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