working overseas - where do I pay tax?

Waestrel

Hello, soon I will be going to Burkino Faso to work for an Australian company in the mining industry. I will be flying back here to Ireland every few weeks. SO I am earning abroad but bringing money back here. ( wages into my Irish bank account) TO whom do i pay tax? To Australia, To Burkina Faso or to Ireland? And should i get an accountant? Is it all self assessed?

CDfm

That is a complicated one as you do not say what type of contract it is and how long it is or your visa status if any.

If you have gotten no futher with this PM me and I can point out the basics.

Waestrel

it is a 6 month contract and i will have a visa for BF

CDfm

not much info to go on i am afraid and the answer is not clear cut .

generally as you will not be living in or working in Aus you will not be taxed there.

the visa type and how the contract is structured and where whoever hired you is based can be very important.

most guys going to sub saharran africa do not go on work visas but business permission or visitors visas and payments are made outside africa and not in the local currency. various reasons like politics and being able to get the money out.

your irish liability will then be determined by your residency for tax purposes and if you are in the country for more than 183 days in a tax year you may have a liability here

read this link

http://www.revenue.ie/en/tax/it/residence.html#section1

this is more than half way thru the year so where you will be living next year is also important in determining it

most of these decisions are either in the contract/visa system used and the type of contract offered.

so it looks like tax is payable here if you are just doing a commute, getting paid gross and living here permanently after your 6 month stint.

Waestrel

well, if i am doing a 4/2 roster, it works out at less than half the year, closer to a third. So, hopefully ill be doing this job for a while and if not, i might head to oz if i cant stick the african adventurism.

Waestrel

also, i have not recieved the official contract yet, so i cannot provide that info yet

Mr. Incognito

If you are flying back a lot and starting half way through the year it is likely you will be resident, ord res and domiciled in ireland in 2011.

Your foreign employment income will most likely be taxed locally depending on the other countries rules.

There also may be Australian tax deducted by virtue of the fact that you may be deemed to have an australian employment contract. You will need to check this with someone who is competent in these jurisdictions.

From an irish perspective a foreign employment no part of which is excercised in Ireland only falls to Irish tax if such income is under an Irish employment contract and excercised abroad OR if such income is remitted (i.e brought back into Ireland as it is current income.) As such by virtue that it is being paid into an Irish bank account you will be liable to Irish tax on it as self assessment income and will have to file a Form 11 in October 2012 to account for this income earned.

If it is liable to local taxes and australian taxes the australian tax will be deductible under tax treaties. The African tax may not be. There is a list on Revenue.ie

If you need a hand or a more detailed answer you can PM me and I can quote you.

CDfm

Mr I , is it not worth establishing if this is a contract for services rather than an employment contract ?

Waestrel

this is getting complicated, but thanks for the answers!

quietsailor

If its any use to you I have the name of a company here in Cork that deal with a lot of seafarers so they are used to people who work abroad but travel home regulary -& dealing with the "183 day rule". If you want their name pm me.

Mr. Incognito

CDfm wrote: »

Mr I , is it not worth establishing if this is a contract for services rather than an employment contract ?

excellent point

i would think a regular payment would be reflective of a employment contract

CDfm

yes, but who is the employer -i doubt there is one or the recruitment would be with the african co and it may even be an agency contract .

when I worked in EMEA most of the visa's were visitors or business permission so i had no employer ever there