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Director payment to non-resident director.

  • 28-11-2017 8:42pm
    #1
    Bronyraur
    Registered Users, Registered Users 2 Posts: 10 ✭


    Hi all
    Does anyone know the tax rules around paying a dividend or a director fee to a non-resident director (outside the EU) from an Irish trading company?
    1. Is the director only subject to income tax for such payment in the jurisdiction they reside? and
    2. How does such a payment relate to the company's profits from a corporate tax point of view? Can it be paid out before profits and thereby reduce the companies profits so less corporation tax is due? That seems wrong?
    Thanks


Comments

  • #2
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    Directors remuneration is subject to taxation in Ireland under Schedule E (even where the director is non-resident).

    Dividends are not deductible for Corporation Tax.


  • #3
    Bronyraur
    Registered Users, Registered Users 2 Posts: 10 ✭Bronyraur


    Great, thanks.
    Do you know if personal tax credits could be used? Have been non-resident for 2 years now so would I still have the first 10k or so tax-free as I would if I was a PAYE earner?
    This income will only be around 15k in total and will be my only Irish income for the year so just looking for a tax efficient way to pay it to myself!
    Thanks


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