Tax Free Earnings - Clawback

Torres999

Just a quick question regarding PAYE and Split Year Relief.

I stopped working in Ireland on 28.02.2017.

I started work in the Cayman Islands on 13.03.2017 at a salary of USD 70k.

If I returned after 1 year i.e 13.03.2018. Would I be liable to pay tax on my Cayman earnings when I return to work in Ireland?

If so, what date could I come back and not be liable?

Peregrinus

Definitely talk to an Irish accountant before you begin work in the Cayman Islands. (I know, I know, but you should have.)

You're resident in Ireland for the tax year 2016/7, and liable to Irish income tax on all your earning in that year, including what you earn in the Caymans. SFAIK, there is no Ireland/Cayman Islands Double Taxation Agreement which would provide relief from this. You will get a tax deduction in Ireland for any Cayman income tax you pay but, still, it's a pretty punitive regime.

If you return permanently to Ireland at any time in the 2017/18 tax year you will also be resident for that year, and the same treatment will apply.

I could be wrong about this, and hopefully I am. But you would be well advised to lay out a few hundred euros talking to an accountant about your personal and employment circumstances to see how best to arrange your affairs to avoid this.

scheister

i know i saw this discussed somewhere recently. If you are only going on a one year contract you are not entitled to split year relief as it requires you to be non resident the following year.

If it is a case you go to the caymens on a 3 year contract and for some reason return in 2018 it may be look at on a case by case basis