Working remotely for US based company from Ireland

pwsnla

I have a question regarding the following scenario.

Person who is a non-domiciled resident in Ireland (with right to work in Ireland) will be employed by an US based company (W-2 based employment).

Work will be performed remotely from Ireland. US taxes will be withheld by the company and obviously US tax return will need to be filed.

What are implications from the Irish tax perspective?

Assuming that income is subject to Irish taxes as well as US taxes, is there anything that has to be done in Ireland now (estimated tax payments of some kind?) or just at the end of the tax year?

gerrybbadd

Assuming you are resident in Ireland for tax purposes.

You will be taxable on that income in Ireland. However, Ireland have a double taxation agreement with the US. This ensures that you will not pay tax on the same income twice.

So, while the US may deduct tax from you, if you provide proof of the amount to Revenue, they will apply the Irish tax rate, and give you credit for the US tax deducted

olestoepoke

What if you are an Irish citizen and domiciled here? I've ben offered a job working for a US company remotely here in Ireland. Would it be a good idea to set up a company and work as a contractor?

adrianw

Why are payroll taxes being withheld if you are resident here and all work is being carried out from Ireland? Are they director fees or is there some specific reason that taxes are being withheld in the US?

normal procedure would be for the US company to register as an employer here and for all payroll taxes to be paid to the Irish Revenue Commissioners.

are you their only Irish based employee?

Mallows

Hi adrian,

may I ask what is the normal procedure for the US company to register as an employer here? Or do they need to create or form a company here in ireland?

thanks