Spouses Working in differnt countrys

Bandana boy

Bit of a hypothetical one for ye

Q1
If one half of a husband and wife is working in say Germany and the other stays home in Ireland can both partners claim there other halfs tax free allowance ?
Q2
Now what if both are based in Ireland but one pays there tax in Germany ?

Mrs OBumble

Q1 - at the Irish end, I believe the answer is yes, but I could be wrong. At the German end, you'd have to ask a German tax person (and I guess it depends if the German tax system has such a thing).

Q2 - I don't see how this could be, you need to pay tax wherever you are tax-resident.

Nody

You pay tax in one country; the country you're working in usually but it depends on the country's legislation. If you're not both written in Ireland then there is not going to be two person's worth of tax credits in Ireland to claim and if both are written in Ireland then both pay Irish taxes in full.

There are also limitations on how you can be accounted for being with in scope of one country's tax range which could mean being in two systems at the same time. You could how ever discount tax paid in one country to the other doing that but it tends to get complicated (need papers translated, special forms etc.).

Bandana boy

So essentially 1 person would be a resident here in Ireland earning no money signing over there Tax credits to there partner while also being a resident in Germany paying there full tax there

Does anybody know if there is any cross check done between EU country's for this ?
Seems like this could be open to quite a lot of abuse.