078. Retention of Domicile Despite Extended Stay Abroad

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Under German law, an individual (natural person) is subject to German tax on his worldwide income if he has either a domicile (Wohnsitz) or his habitual place of abode (gewoehnlicher Aufenthalt) in Germany (sec. 1 EStG). As is the case under the tax law of most countries, citizenship is irrelevant. The definitions of domicile and habitual abode are found in the tax procedure act. This provides that an individual is domiciled where he has a dwelling under circumstances which permit the inference that he will retain and use it (sec. 8 AO). It is possible to have more than one domicile in this sense. By contrast, an individual has only one habitual abode (sec. 9 AO). This is located where he is physically present under circumstances which show that his presence in the place or area in question is not merely temporary. Even if