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Double Taxation

  • 21-06-2018 3:59am
    #1
    Dubsmb
    Registered Users, Registered Users 2 Posts: 5 ✭


    I am a small youtube content creator and recently started earning money from it. Now as i am with a network they technically pay me. I had to fill out a tax form for them and they are based in the US. They had told me that there is a treaty between certain countries that could make me exempt from paying tax in my own country.

    This means that I pay what I need to pay in tax for the US since my income is based on work there.

    So here’s my dilemma. From everything I’ve researched I found that I do not have to pay tax on income I earn in the US if it’s already taxed there. Is that correct?

    I still registered for income tax here in Ireland as well as I wasn’t aware of this but I’ll have to figure that out.


Comments

  • #2
    Peregrinus
    Registered Users, Registered Users 2 Posts: 27,004 ✭✭✭✭Peregrinus


    Dubsmb wrote: »
    I am a small youtube content creator and recently started earning money from it. Now as i am with a network they technically pay me. I had to fill out a tax form for them and they are based in the US. They had told me that there is a treaty between certain countries that could make me exempt from paying tax in my own country.

    This means that I pay what I need to pay in tax for the US since my income is based on work there.
    But you're doing the work here, surely? Are you not located in Ireland
    Dubsmb wrote: »
    So here’s my dilemma. From everything I’ve researched I found that I do not have to pay tax on income I earn in the US if it’s already taxed there. Is that correct?

    I still registered for income tax here in Ireland as well as I wasn’t aware of this but I’ll have to figure that out.
    Ireland-US Double Taxation Agreement.

    To work out how it applies to the money you're getting, we need to known why, exactly, you're getting it. It it wages from a US employer? (Unlikely.) Royalties paid by a US resident for using intellectual property that you own? Fees for a service provided? Check the terms of your contract with whoever is paying you this money to see how the payment is characterised and what it is for, and then see how that payment is treated under the Double Taxation Agreement.

    Note that the usual outcome is not that you pay tax in the country where the income is generated, but that you pay tax in the country where you are resident. So the upshot here may be that you avoid US tax but pay Irish tax, rather than the other way around. But it's hard to say for sure, without a lot more information than you have provided in your OP.


  • #3
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    OP you are not exempt from Irish tax, but you may be able to apply a deduction for US tax already paid.


  • #4
    wiggle16
    Moderators, Society & Culture Moderators Posts: 3,022 Mod ✭✭✭✭wiggle16


    If you are resident in Ireland then Ireland has primary taxation rights over you. Generally speaking this means you pay tax in Ireland, regardless of where the money arose.

    If it is taxed by the US authorities, you can claim credit for the tax deducted when declaring the income in Ireland. As others have noted, check the contract and terms of the payment and how that is treated under the taxation treaty between Ireland and the US.


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