Live in Ireland, income abroad, what to do with income tax?

rob!!

Hi!
I'm a Dutch national who'll be moving back to Ireland soon, but will be keeping my job from a Finnish employer; working remote from home all year around.
My question is; where should I pay my income tax (and if applicable; PRSI)? I'm currently already taxed in Finland, so should I set up a company and work on a consultancy basis with my employer?
Or is there a better alternative?

I'd prefer to pay income tax in Ireland since the taxation rate in Finland is (notoriously) horrendous, but anything will do really

Any help appreciated

edit:
All I know so far is that there's a double-taxation agreement between Ireland and Finland which prevents me from having to pay income tax twice, but that doesn't tell me where I should be paying my taxes.
I'm also checking what the Finnish side of this story is, but I'm waiting on the wife to translate me the regulations for that

rob!!

Ahem .. just when you post a thread you stumble across the answer. Somewhat.

According to: http://www.revenue.ie/en/tax/it/foreign-income-assets.pdf

Appendix 2, page 15
Resident: yes
Ordinarily resident: yes
Domiciled: no
Irish income tax implications: taxable on: All Irish income (see note 1); foreign income only if remitted (but see note 2 re employment income )

Note 1: The remittance basis of taxation

The remittance basis applies to foreign sourced income and foreign capital gains. For any tax year during which you are not Irish domiciled, or you are an Irish citizen who is not ordinarily resident in Ireland, you will only be taxable to the extent that you “remit” or bring foreign income into Ireland. If you are not Irish domiciled, your non-Irish gains will only be taxable to the extent that they are remitted or brought into Ireland.
Up to 31 December 2007 the “remittance basis” did not apply to UK income, so for non-ordinarily resident or non-domiciled taxpayers UK income was taxable whether or not it was remitted to Ireland. From 1 January 2008, the remittance basis is extended to UK income.
Up to 19 November 2008 the “remittance basis” did not apply to UK gains so for non-ordinarily resident or non-domiciled taxpayers UK gains were taxable whether or not they were remitted to Ireland. From 20 November 2008, the remittance basis is extended to UK gains.

Note 2: Foreign employments where duties wholly or partly performed in the State

From 1 January 2006, income from a non-Irish sourced employment, attributable to the performance in the State of the duties of that employment, is chargeable to Irish income tax and subject to PAYE deductions at source, whether or not such income is remitted into the State.

Note 3: Double Taxation Agreements.

While the table above outlines your income tax treatment under Irish domestic legislation, you should be aware that the provisions of a Double Taxation Agreement will generally take precedence over domestic legislative provisions and may result in a different tax treatment in certain circumstances.

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So, concluding; I normally would be liable for Irish income tax (note 2), but am not because of a double taxation agreement between Ireland and Finland (note 3).
And according to the next paragraph on PRSI, I - since I'm not a self-employed taxpayer in that sense - would not be liable for PRSI either.

Am I correct in assuming this?

rob!!

Okay, found the answer. Will share it here in case anyone else ends up in the same situation:

My exact problem is mentioned on http://www.citizensinformation.ie/categories/employment/migrant-workers/coming_to_IE_tax as:

If you are working in Ireland but are paid from abroad

Unless your income is relieved from Irish tax under the provisions of a double taxation agreement, it will be taxable here from the date of your arrival regardless of your Irish residence status for tax purposes

And since I am covered by a double taxation agreement, that means I'll continue to pay my taxes in Finland.

(...altho my wife just told me the finnish tax regulations have a clause for limiting this agreement to 6 months max apparently, but I'll figure that out with the tax office over here..)

TaxingTimes

Although you may be covered by tax treaty - you need to declare all of your income in Ireland.

You will be taxable in Ireland as an Irish resident, and can get a credit for any Finnish tax paid - depending on the level of Finnish tax paid, you may have a balance to pay in Ireland.

If you need help with your tax returns you can contact me.

SaschaKyiv

Under normal circumstances your income would be taxable in Ireland as the duties of your employment are exercised in Ireland.

You can claim relief under the provisions of the IRE-FIN double taxation treaty but there are a number of conditions. One of them being that you are "present in the other State (Ireland) for a period or periods not exceeding in the aggregate 183 days within any twelve-month period falling wholly or partly within the fiscal year concerned (2009)".

Essentially, if you exceed 183 days in Ireland in the 12 month period from your date of arrival you may not qualify for relief under the treaty in that tax year.

Your income will have to be reported either way.

I have seen cases where Revenue have requested very specific details of an individuals days of presence in Ireland when claiming relief under a double taxation treaty.

Would be worthwhile keeping track of your days in and out.

At the end of the day if you have to pay tax (PAYE) in Ireland legislation places the onus on your employer (whether based in Ireland or not) to operate PAYE on your monthly salary and pay it over to Revenue.

If your employer is assigning you to IRE you should also look into getting an E101 in Finland. This is a form that will go to the Finnish social security authorities. It will retain you in the Finnish social security system and exempt you from paying social security in Ireland.

Hope this has been helpful.

Billiejo

I have just had some experience of this but may be a different arrangement between Ireland and UK?.
Worked in the UK for 30 years before early retirement. Worked in Ireland from 2006 until a few months ago. During this period I only paid taxes in Ireland having being informed by Revenue one only pays tax in the country in which one is working.