<P> "Principal place of physical presence" covers a wider range of situations that a basic 183 - day rule would have . This is because the taxpayer's physical presence in France in a given calendar year will be tested against his presence in another country . Perpetual travelers must therefore be able to demonstrate that they have resided in a foreign country for a longer period in the relevant calendar year . </P> <P> In Russian Federation all tax resident individuals are taxed on their worldwide income, regardless of the source . Individuals are deemed to be tax residents if they are physically present in Russia for more than 183 days during consecutive period of 12 months . The period of presence in Russia is not interrupted in case individual is out of the country for less than six months for educational purposes or for medical treatment . Foreign servants and civil servants that were sent abroad for work purposes are deemed tax residents no matter how long they really are present in Russia . </P>

Explain the importance of residence in personal income tax