An Irish registed Ltd for an expat

chompdown

I'm running my own business as a sole trader in another EU country. I'm Irish but left Ireland about 3 years ago. The company is registered in my current country, not Ireland.

The place where I'm based now is a high tax jurisdiction and I'm looking for options now that I will change from sole trader to Ltd.

Does anyone have any experience of using an Irish company as a non resident? I presume I would pay dividends from the Irish company to myself and be taxed based on these dividends rather than income tax that I currently pay as a sole trader. In ireland I would just pay corporation tax on my profits?

This is all a bit confusing for me as the sole tradership is so simple, but now income levels are reaching a point where I need to be a little smarter...

Trojan

I'd see if you can speak with two accountants, one local and one back in Ireland. Get advice from both of them on the situation. (Initial consultations are usually free).

antoinolachtnai

You need to consult accountants for sure, but in general income from dividends is taxable the same as any other income.

pedroeibar1

chompdown wrote: »

I'm running my own business as a sole trader in another EU country. I'm Irish but left Ireland about 3 years ago. The company is registered in my current country, not Ireland.

The place where I'm based now is a high tax jurisdiction and I'm looking for options now that I will change from sole trader to Ltd.

Does anyone have any experience of using an Irish company as a non resident? I presume I would pay dividends from the Irish company to myself and be taxed based on these dividends rather than income tax that I currently pay as a sole trader. In ireland I would just pay corporation tax on my profits?

This is all a bit confusing for me as the sole tradership is so simple, but now income levels are reaching a point where I need to be a little smarter...

There is confusion TBH because you contradict yourself, don't understand the difference between a sole trader and a company, and have no idea of basic EU tax legislation or tax treaties – you say you are a sole trader, next you say the “company” is registered in your current country. Then you ask would you pay corporation tax on your profits… ???
You would not pay CPT , but the company would, and then you would then pay tax on any dividends and on any directors fees. How much, what fees and where depends on several factors. For example, are you non-resident, non-ordinarily resident but domiciled in the State for the tax year in respect of which tax liability is to be calculated? Or, are you non-resident, non-ordinarily resident but non- domiciled? Do not confuse domicile and residence, three years also is a narrow timeframe.
As the others have said, you need professional advice, but before asking for it learn the terminology first otherwise you will be wasting your time. Revenue.ie have leaflets. Go look on Revenue.ie for tax for a non-resident.

chompdown

pedroeibar1 wrote: »

There is confusion TBH because you contradict yourself, don't understand the difference between a sole trader and a company, and have no idea of basic EU tax legislation or tax treaties – you say you are a sole trader, next you say the “company” is registered in your current country. Then you ask would you pay corporation tax on your profits… ???
You would not pay CPT , but the company would, and then you would then pay tax on any dividends and on any directors fees. How much, what fees and where depends on several factors. For example, are you non-resident, non-ordinarily resident but domiciled in the State for the tax year in respect of which tax liability is to be calculated? Or, are you non-resident, non-ordinarily resident but non- domiciled? Do not confuse domicile and residence, three years also is a narrow timeframe.
As the others have said, you need professional advice, but before asking for it learn the terminology first otherwise you will be wasting your time. Revenue.ie have leaflets. Go look on Revenue.ie for tax for a non-resident.

I appreciate the advice but not so much the condescending attitude. I came here looking for some basic advice. If I knew everything, I wouldn't have posted the question!

It's summer. Cheer up!

pedroeibar1

I generally ignore stupid opening posts, I respond to those that I believe have merit. Like the other Pedro I am blunt, not condescending and I do not have to be nice because I do not charge by the hour like a lawyer/accountant, whose meter would be running (expensively) while s/he explains basic items like the difference between residence and domicile.