Tax Residence Question

anonymous08

Hi,

I have a question on tax residence.

I am irish & have been working here for the last 10 years.
My question is that if I work here for the whole of 2014 and moved to work in mainland europe between February and June 2015 am I considered to be tax resident in ireland for 2015 as I would have worked in Irleand for more than 30 days in 2015?
Meaning I would have to pay income tax here for the difference in the tax rate between the foreign country and here for 2015

Just to clarify the plan would be to be abroad for at least 3 years.

If the answer is yes to the above it would probably impact time in the year i leave (Jan or very late in the year)

Thanks in advance
anonymous08


Revenue Website:
Test 2

Where the time spent in the State in a tax year is less than 183 days, then the second test comes into play. The second tax residence test is the 280 days two-year test and involves taking account of an individual’s presence in the State, not alone in one tax year, but also in the preceding tax year. Under this test an individual is regarded as tax resident in the State for tax purposes for any year in which he or she spends a total of 280 days or more in the State in the tax year and in the immediately preceding tax year. However, this test will not apply in any year that an individual is present in the State for not more than 30 days

Stheno

anonymous08 wrote: »

Hi,

I have a question on tax residence.

I am irish & have been working here for the last 10 years.
My question is that if I work here for the whole of 2014 and moved to work in mainland europe between February and June 2015 am I considered to be tax resident in ireland for 2015 as I would have worked in Irleand for more than 30 days in 2015?
Meaning I would have to pay income tax here for the difference in the tax rate between the foreign country and here for 2015

Just to clarify the plan would be to be abroad for at least 3 years.

If the answer is yes to the above it would probably impact time in the year i leave (Jan or very late in the year)

Thanks in advance
anonymous08


Revenue Website:
Test 2

Where the time spent in the State in a tax year is less than 183 days, then the second test comes into play. The second tax residence test is the 280 days two-year test and involves taking account of an individual’s presence in the State, not alone in one tax year, but also in the preceding tax year. Under this test an individual is regarded as tax resident in the State for tax purposes for any year in which he or she spends a total of 280 days or more in the State in the tax year and in the immediately preceding tax year. However, this test will not apply in any year that an individual is present in the State for not more than 30 days

I would say yes in your case tbh

Mr. Incognito

Read the stickied read on leaving during the year, you can apply to be deemed non resident any time during the year you leave

Dixie Chick

anonymous08 wrote: »

Hi,

I have a question on tax residence.

I am irish & have been working here for the last 10 years.
My question is that if I work here for the whole of 2014 and moved to work in mainland europe between February and June 2015 am I considered to be tax resident in ireland for 2015 as I would have worked in Irleand for more than 30 days in 2015?
Meaning I would have to pay income tax here for the difference in the tax rate between the foreign country and here for 2015

Just to clarify the plan would be to be abroad for at least 3 years.

If the answer is yes to the above it would probably impact time in the year i leave (Jan or very late in the year)

Thanks in advance
anonymous08


Revenue Website:
Test 2

Where the time spent in the State in a tax year is less than 183 days, then the second test comes into play. The second tax residence test is the 280 days two-year test and involves taking account of an individual’s presence in the State, not alone in one tax year, but also in the preceding tax year. Under this test an individual is regarded as tax resident in the State for tax purposes for any year in which he or she spends a total of 280 days or more in the State in the tax year and in the immediately preceding tax year. However, this test will not apply in any year that an individual is present in the State for not more than 30 days

Hi, as you have been living in Ireland and working for the last ten years, then you will be whats knows as "ordinary resident". Ordinary residence takes three years to build up and three years to lose.

Ordinary residence

Your pattern of residence over a number of years is taken into account to decide your ‘ordinary residence’.
If you have been resident for the previous three tax years then you become ordinarily resident from the start of the fourth year. If you leave the country, you will continue to be ordinarily resident until you have been non-resident for three continuous tax years.

You will fall into a worldwide income net of tax, less some exceptions, based on the fact that you will be Ordinary Resident and Domiciled.

Mr. Incognito

To be clear. Ordinarily resident and domicile in Ireland will not give rise to Irish income tax on non Irish employment income if you elect to be non resident from the date you leave

Marcusm

OP: The term you are looking for is split year treatment - see the following extract from Revenue's RES1 booklet. If you have significant non employment income, you will need advice.

If you are resident during the tax year you leave and non-resident for the following tax year, you will, as regards the taxation of employment income, be deemed to be non-resident from the date of your departure. This means that your employment income will be exempt from Irish tax from that date.

In order to avail of this arrangement, known as split year treatment, it is necessary that you satisfy your Local Revenue office of your intention not to be resident in the State for the tax year following your departure. In this regard, a statement from your employer or a copy of your contract of employment indicating the length of time you intend to spend working abroad should be submitted in support of your claim.

anonymous08

Everyone, thanks for all the feedback.

Marcusm/Mr. Incognito hopefully I can go under the split year treatment, I had seen some of the material on that but wasn't sure if it applied to me.

I am working for my own ltd company. Owner/Director/employee (no other employees), would you know if that has any impact on my ability to apply for split year treatment