Will I be taxed in Ireland for bringing/transferring lump sum of savings home?

absolutegroove

Hello,

I have been living and working in the Middle East (Qatar) for the last three years and will be moving back home to Ireland in September. I have a large lump sum of savings and I will need to transfer this back to Ireland.

My Q is will I be taxed on this when I return to Ireland?

I hope someone can be of help?

Thank you.

paul71

If you spend 183 days of a tax year in a different tax juristiction you are taxable in that juristiction not this one so the answer is no you do not have a liability. The only difficulty you would have incurred would have been if you had returned to Ireland before 30th June of this year, then you would have been Liable to income earned abroad in the current tax year and remitted here.

absolutegroove

Hi Paul,

Thanks for your reply.

Does it matter that Qatar is a tax free country? Would/Could that be a problem?

Thanks.

paul71

absolutegroove wrote: »

Hi Paul,

Thanks for your reply.

Does it matter that Qatar is a tax free country? Would/Could that be a problem?

Thanks.

No, you need to look at it this way. Qatar is not tax free, you are still taxable there under international tax law, but Qatar have choosen to apply a tax rate of 0% to your income as opposed to 1%, 20%, 50% or 90%.

absolutegroove

Thank you for taking the time to answer my question Paul.

Marcusm

paul71 wrote: »

No, you need to look at it this way. Qatar is not tax free, you are still taxable there under international tax law, but Qatar have choosen to apply a tax rate of 0% to your income as opposed to 1%, 20%, 50% or 90%.

Please point me to this bible of international tax law and specifically to the page which shows that Qatar has specifically introduced tax rate of 0%. The outcome should be the same but your analogy would concern me.

paul71

Marcusm wrote: »

Please point me to this bible of international tax law and specifically to the page which shows that Qatar has specifically introduced tax rate of 0%. The outcome should be the same but your analogy would concern me.

Provisions Relating to Residence of Individuals Part 34 Taxes Consolidation Act 1997

Irish Act relating to residency.

I dont care nor is it relevent what tax rate Qutar choose to levy on their residents, but I am sure if you wish to do a search on the internet yourself you would be able to find it. The pertainant issue is that they levy a tax rate of 0% on their residents according to the op, and as a result of that rate being levied the double tax treaty comes into effect.

The double tax treaty with Qatar is here

http://www.revenue.ie/en/practitioner/law/tax-treaties.html


Happy enough?

Marcusm

paul71 wrote: »

Provisions Relating to Residence of Individuals Part 34 Taxes Consolidation Act 1997

Irish Act relating to residency.

I dont care nor is it relevent what tax rate Qutar choose to levy on their residents, but I am sure if you wish to do a search on the internet yourself you would be able to find it. The pertainant issue is that they levy a tax rate of 0% on their residents according to the op, and as a result of that rate being levied the double tax treaty comes into effect.

The double tax treaty with Qatar is here

http://www.revenue.ie/en/practitioner/law/tax-treaties.html


Happy enough?

I guess my tongue in cheek approach was not understood; there is no Qatari tax imposed on the employment income of individuals. It is not a rate of 0% but an absence of tax. If you cannot appreciate the difference, it matters not a whit.

The treaty would be practically irrelevant to a temporary resident in Qatar and I'm very familiar with the rules governing Irish tax residence for individuals, companies, tax situs of trusts estates and many other vehicles (having personality and otherwise).

I'm not that happy today having spent too long ont he phone trying to sort out car insurance and the like but nothing to do with this.

paul71

Marcusm wrote: »

I guess my tongue in cheek approach was not understood; there is no Qatari tax imposed on the employment income of individuals. It is not a rate of 0% but an absence of tax. If you cannot appreciate the difference, it matters not a whit.

The treaty would be practically irrelevant to a temporary resident in Qatar and I'm very familiar with the rules governing Irish tax residence for individuals, companies, tax situs of trusts estates and many other vehicles (having personality and otherwise).

I'm not that happy today having spent too long ont he phone trying to sort out car insurance and the like but nothing to do with this.

I appreciate the difference between exempt and zero rated, but that is not the issue, and there is little point in expanding on a point such as that to the op as he is probably not an accountant or tax advisor and would have little interest in the distinction.

The income is taxable in Qatar and it is their choice whether to zero rate it, exempt it or tax it at 99%, however because it is taxable there it is therefore subject to the provisos of the double tax agreement.

The arguement is slightly pedantic and sorry if my reply was terse but the effect to the op is the same, no tax here.

OP if you have any doubt give the revenue commissioners a call, they are very helpful and will speak to you in detail on the matter.

Marcusm

paul71 wrote: »

I appreciate the difference between exempt and zero rated, but that is not the issue, and there is little point in expanding on a point such as that to the op as he is probably not an accountant or tax advisor and would have little interest in the distinction.

The income is taxable in Qatar and it is their choice whether to zero rate it, exempt it or tax it at 99%, however because it is taxable there it is therefore subject to the provisos of the double tax agreement.

The arguement is slightly pedantic and sorry if my reply was terse but the effect to the op is the same, no tax here.

With respect, you don't appreciate the difference if you believe that the absence of a tax on income in a particular country means that it is taxable there but exempt in the particular circumstances. That is simply an incorrect statement.

You are correct that it is probably not of relevance to the OP.

paul71

Marcusm wrote: »

With respect, you don't appreciate the difference if you believe that the absence of a tax on income in a particular country means that it is taxable there but exempt in the particular circumstances. That is simply an incorrect statement.

You are correct that it is probably not of relevance to the OP.

I am correct. Stallion fees are exempt in Ireland and if the owner of the stallion moves to the Uk on the 182nd day of the year he becomes taxable there for the entire year because the exemption does not exist there. If he moves on the 183rd day of the year he can avail of the double tax treaty because the income is subject to the tax rules of Ireland. That is the distinction that you are failing to appreciate.

Marcusm

paul71 wrote: »

I am correct. Stallion fees are exempt in Ireland and if the owner of the stallion moves to the Uk on the 182nd day of the year he becomes taxable there for the entire year because the exemption does not exist there. If he moves on the 183rd day of the year he can avail of the double tax treaty because the income is subject to the tax rules of Ireland. That is the distinction that you are failing to appreciate.

And there is no income tax in Qatar at all - simply a risk that a non resident might suffer withholding taxes on professional services fees. And it is this absence of an income tax de jure which is important and is the distinction with a difference. IN Ireland there is a comprehensive income tax statute and persons may not be subject to it in respect of certain types of income (such as your stallion fees example) and some may be entirely outwith its scope (pension funds) which is very different.

paul71

Marcusm wrote: »

And there is no income tax in Qatar at all - simply a risk that a non resident might suffer withholding taxes on professional services fees. And it is this absence of an income tax de jure which is important and is the distinction with a difference. IN Ireland there is a comprehensive income tax statute and persons may not be subject to it in respect of certain types of income (such as your stallion fees example) and some may be entirely outwith its scope (pension funds) which is very different.

But there are tax laws which make income exempt from tax there. Therefore since the op is resident in Qatar for this tax year he is assessable under Qatar tax (which as a soveign state they are free to change and introduce income tax any time they choose) had he come back before 30th June his income would have been assessable on the part year rule in Ireland and income tax exemptions according to type under Qatar law do not apply here. Whether there is income tax in Qatar or not is completly irrelevent, he is still subject their tax law or lack of same.

Marcusm

paul71 wrote: »

But there are tax laws which make income exempt from tax there. Therefore since the op is resident in Qatar for this tax year he is assessable under Qatar tax (which as a soveign state they are free to change and introduce income tax any time they choose) had he come back before 30th June his income would have been assessable on the part year rule in Ireland and income tax exemptions according to type under Qatar law do not apply here. Whether there is income tax in Qatar or not is completly irrelevent, he is still subject their tax law or lack of same.

The absence of a law to impose a tax is not the same as the imposition of a tax plus exemptions. I'm bowing out.

paul71

Marcusm wrote: »

The absence of a law to impose a tax is not the same as the imposition of a tax plus exemptions. I'm bowing out.

Same effect and dose not change the fact that Qatar are free to introduce an income tax act midnight tonight which would suit the pedantic nature of your terminology yet change nothing in terms of its effect on the op s position.