280 day test - can it be used to make you resident in 2 years?

brianstann

Hi, question about tax residence and the 280 day test

If someone is tax resident for year 1 (say 2016) by virtue of being here for 183 days or more - lets say they were here for the whole year, 350 days or something

Can those days be then used to make them tax resident in year 2 aswell (280 days spread across 2 years) (2017) if they leave Ireland and become tax resident elsewhere?

Or is the 280 day test only used in cases where you are NOT tax resident in year 1 (2016) but you have 280 days cumulatively over 2 years to make you resident in year 2?

I assume this is the case - that the 280 day test only applies if you are not resident in the first year of 2? (that it cannot be used to make you resident in a subsequent year just because you spent a full year the preceding year), but just want to clarify

Sorry if my wording is confusing.

Thanks

dogsears

brianstann wrote: »

Hi, question about tax residence and the 280 day test

If someone is tax resident for year 1 (say 2016) by virtue of being here for 183 days or more - lets say they were here for the whole year, 350 days or something

Can those days be then used to make them tax resident in year 2 aswell (280 days spread across 2 years) (2017) if they leave Ireland and become tax resident elsewhere?

Or is the 280 day test only used in cases where you are NOT tax resident in year 1 (2016) but you have 280 days cumulatively over 2 years to make you resident in year 2?

I assume this is the case - that the 280 day test only applies if you are not resident in the first year of 2? (that it cannot be used to make you resident in a subsequent year just because you spent a full year the preceding year), but just want to clarify

Sorry if my wording is confusing.

Thanks

Those days can be used to make them resident in the second year. The test is 280 days in total between the year in question and the prior year, with at least 30 days present in Ireland in each year. There is nothing to limit this rule to situations where you were not resident in the prior year.

brianstann

So that basically means spending 280 days in the country in one year - where you are living there full time - basically makes you resident for 2 full years?

dogsears

As long as you are in the country for 30 days of the second year, yes.

Note that if you move away during the second year you may be able to claim split year residence, which means you'd only be considered resident up to the point of departure. There's information here

brianstann

OK< thanks. The split year thing says its only apply able to employment income : does that mean for the 2nd year you would still be resident in Ireland for purposes of other taxes (CGT,CAT)?

The only way to avoid residence in the second year then is to spend < 30 days in that year?

dogsears

brianstann wrote: »

OK< thanks. The split year thing says its only apply able to employment income : does that mean for the 2nd year you would still be resident in Ireland for purposes of other taxes (CGT,CAT)?

The only way to avoid residence in the second year then is to spend < 30 days in that year?

Yes and yes.

There are other factors beyond residence that are relevant in determining liability for CGT, CAT etc but the fundamental rules re residence to the extent it's relevant are the same, with some variations for CAT.