Income Tax on middle east employment

fintonio

Hi all,

Can anyone offer a bit of practical advice on a general situation pls? Say a foreign EU resident is starting a job in middle east 8wks on/6 off.The person will return to Ireland mainly when not working but will not clock up enough days to be resident in Ireland.Their spouse is Irish and that's why they journey here.
Where is this person liable to pay tax? The middle east low tax? Their existing country or can they sign off there as not returning?Or irl as coming back to spouse? Thx.

Marcusm

How have you worked ut that there are not enough days to be resident in Ireland? Have you used the 183 days one year rule? Have you considered the 280 day over 2 years rule? Based on the pattern you describe, I would suspect the hypothetical individual would remain Irish tax resident. You haven't identified the Middle Eastern country so it is not possible to ascertain whether a double taxation agreement might have an influence on the outcome.

fintonio

Marcusm wrote: »

How have you worked ut that there are not enough days to be resident in Ireland? Have you used the 183 days one year rule? Have you considered the 280 day over 2 years rule? Based on the pattern you describe, I would suspect the hypothetical individual would remain Irish tax resident. You haven't identified the Middle Eastern country so it is not possible to ascertain whether a double taxation agreement might have an influence on the outcome.

Thanks for that Marcusm, they will not be resident in Ireland under the number of days spent here.The employment country is Dubai.The person is not currently Irish resident,they are UK resident.

Marcusm

fintonio wrote: »

Thanks for that Marcusm, they will not be resident in Ireland under the number of days spent here.The employment country is Dubai.The person is not currently Irish resident,they are UK resident.

Now you've made it more complicated; some points:

1. The tax residence if a UK individual who goes abroad for employment but retains ties to the UK is nt simple - there have been cases in the last 4 years which have resulted in outcomes even HMRC didn't expect. A new satutory residence test may help.
2. The time pattern you describe would involve more than 280 days over a two year period so I'm not sure hw you have concluded that they wouldn't be resident here. Even if they were resident, if they are not Irish originally (code for not Irish domiciled) then there may not be Irish tax or only limited Irish tax. You need proper advice.
3. You may see this as pedantic but Dubai is not a country, merely a subdivision of UAE. The Ireland/UAE double tax agreement is not currently in for e in any event.

Professional advice needed.

fintonio

Marcusm wrote: »

Now you've made it more complicated; some points:

1. The tax residence if a UK individual who goes abroad for employment but retains ties to the UK is nt simple - there have been cases in the last 4 years which have resulted in outcomes even HMRC didn't expect. A new satutory residence test may help.
2. The time pattern you describe would involve more than 280 days over a two year period so I'm not sure hw you have concluded that they wouldn't be resident here. Even if they were resident, if they are not Irish originally (code for not Irish domiciled) then there may not be Irish tax or only limited Irish tax. You need proper advice.
3. You may see this as pedantic but Dubai is not a country, merely a subdivision of UAE. The Ireland/UAE double tax agreement is not currently in for e in any event.

Professional advice needed.

Thanks Marcusm