Foreign Income

royalcarlowgc

I have worked in Ireland for the past 5 years. I was let go in early 2010 and received Social Welfare payments for two months until I left to work in Aussie for three months. I worked as a consultant for a company in Aussie (I invoiced them for work done etc) and they paid me without deducting tax. I received approx €50k into my Irish Bank Account. I am now back in Ireland and wondering do I have to pay any tax on the above?

Cookie_Monster

yes you do. (Studying tax but not actively doing it so may not be 100% correct but this is my opinion based on what I know)

As you would be considered both Resident and Ordinary Resident in Ireland tax is due on any income remitted (if not domicilled) or world wide income (if domiciled)

This needs to be declared in your tax return, due very soon iirc and the appropriate taxes and levies paid on it.

royalcarlowgc

Thanks for that. I presume I can offset my travel expenses etc against the income.

nompere

royalcarlowgc wrote: »

Thanks for that. I presume I can offset my travel expenses etc against the income.

Only to the extent that they were incurred in earning the income - so trips from Ireland to Australia and back will not qualify.

I don't profess to know anything in particular about Australian tax, but a general principle is that tax gets charged on income earned in a country by that country. Now if you never propose to go back to Australia then there mightn't be a problem, but if you walk away from a liability and intend to return you might find that the authorities there have a long memory.

If it turned out that you had a tax liability in Australia then the Irish Revenue will give a tax credit, so it wouldn't cost very much to clear your position with the Australian revenue and it might save you considerable grief in the future.

I think you would do well to consult an Australian tax consultant.

royalcarlowgc

I think income tax is charged at 47% on non residents in Aussie.

Thank you for your comments.

dbran

royalcarlowgc wrote: »

I have worked in Ireland for the past 5 years. I was let go in early 2010 and received Social Welfare payments for two months until I left to work in Aussie for three months. I worked as a consultant for a company in Aussie (I invoiced them for work done etc) and they paid me without deducting tax. I received approx €50k into my Irish Bank Account. I am now back in Ireland and wondering do I have to pay any tax on the above?

Exactly how long did you stay in Oz?

royalcarlowgc

3 months

eire2009

Im having the same problem. My contract is in net value and paid from the country where im currently living and working into my Irish Bank account. Do I have to pay tax on this as I already have paid tax in the country where im staying.. How long do I have to live here to not have an Irish tax Liability.. Am I better putting it into a foreign bank account??

How much would be due if say I earned 50k net over a year while living here. Resident this year and Ordinarily Resident next year in Ireland

dbran

Where were you born/domiciled

eire2009

dbran wrote: »

Where were you born/domiciled

Sadly :rolleyes: The country doesn't have any Double taxation agreements currently in place with Ireland. I have read similar things that I have no liability from employment if I'm not resident but than I've also read that you have a liability if your domiciled and ordinarily resident so I'm a bit confuzzeled