Working outside Ireland for an Irish company

twitch1984

Hi I am an electrician currently working in Belgium for a company back home, I am still getting paid in Ireland and have been told by ppl here that I can claim tax back/tax free allowance as I am working outside the country.
does anybody know if this is true and if so how do I go about claiming it. Have been on the revenue website but couldnt find any helpful info.
All help appreciated

pigeonbutler

twitch1984 wrote: »

Hi I am an electrician currently working in Belgium for a company back home, I am still getting paid in Ireland and have been told by ppl here that I can claim tax back/tax free allowance as I am working outside the country.
does anybody know if this is true and if so how do I go about claiming it. Have been on the revenue website but couldnt find any helpful info.
All help appreciated

Depends on a lot of things, including Belgian law. Are you in Belgium for a short period or longer than 6 months?

In general if you're getting paid for an Irish contract of employment and still resident in Ireland (I.e. here at least 140 days per year) you'll still be subject to Irish income tax on that pay. So no tax back should apply.

Things get more complicated if you're going to be subject to Belgian tax also but more than likely it's your employers obligation to check that out.

twitch1984

Thanks pigeon. from what i read up it is quiet complicated, the plan is to be here for 2-3 years,

brianwalshcork

twitch1984 wrote: »

Hi I am an electrician currently working in Belgium for a company back home, I am still getting paid in Ireland and have been told by ppl here that I can claim tax back/tax free allowance as I am working outside the country.
does anybody know if this is true and if so how do I go about claiming it. Have been on the revenue website but couldnt find any helpful info.
All help appreciated

In the past*, there was something called "Foreign Earnings Deduction", whereby if you were out of the state for more than 180 days in a two year period, then you were eligible to apply. The refund was pro rated, so if you were working abroad for 6 months, then you could get 50% back and if it was 12 months in a tax year, then you got all your tax back.


*This was more than 10 years ago, and I'm working from memory!

I think that the FED scheme was abolished though, but maybe there is something else in it's place.


Brian

smeharg

Your employer may be able to apply to Revenue for an exclusion order so they can pay you without deduction of PAYE.

See here

You can keep paying PRSI though, to maintain eligibility for social welfare benefits.

Foreign Earnings Deduction was abolished 7/8 years ago.

brendan1962

Hi

I have been doing some research in this area and this document is a useful revenue guideline. It is 12 years old but from looking at the revenue website ... much of it still appears to be relevant

http://www.ucc.ie/en/financeoffice/Payroll/WorkingAbroadRevenueLeaflet/DocumentFile-19974-en.pdf

nompere

If you are going to link to Revenue leaflets, at least give an up to date link.

Res 1 was reissued in July 2010:

http://www.revenue.ie/en/tax/it/leaflets/res1.html

Mr. Incognito

This is not readily available info as it is in Statment of Practices IT 0?/07 from Memory.

It's one of the first ones that year,

In short, Irish contract of employment is subject to Irish PAYE and PRSI.

If you are subject to Belgian Tax your employer may operate a shadow payroll there and have some sort of balancing at the end of the year or assist you utilising the Treaty to claim any dual taxation.

Only way is to ask them.