Double Taxation and UAE- please help

shimmery

Hello there,

I have been teaching a year in the UAE and will be returning this September again. I wish to work this summer in Ireland working with children with special needs. I am happy to pay tax on my Irish earnings, but because of this, would I expected to pay tax on my foreign earnings? I cant figure out the double taxation treaty agreement. Its all so confusing. I think I am classified as a resident as I will have been here more than 280 days over a 2 year period.

I'd appreciate any advice, as I need to figure out today if I can take on this work or not.

Kind Regards,

Calahonda52

Did you pay tax here on last years income in UAE?

Are you filing tax returns here?

barneystinson

shimmery wrote: »

Hello there,

I have been teaching a year in the UAE and will be returning this September again. I wish to work this summer in Ireland working with children with special needs. I am happy to pay tax on my Irish earnings, but because of this, would I expected to pay tax on my foreign earnings? I cant figure out the double taxation treaty agreement. Its all so confusing. I think I am classified as a resident as I will have been here more than 280 days over a 2 year period.

I'd appreciate any advice, as I need to figure out today if I can take on this work or not.

Kind Regards,

Having taken on and done some work in Ireland while you were here, has no bearing on the taxation of money you earn over there.

(I'm not passing any comment on the taxation of your UAE income btw, just telling you that this summer work is irrelevant.)

Marcusm

shimmery wrote: »

Hello there,

I have been teaching a year in the UAE and will be returning this September again. I wish to work this summer in Ireland working with children with special needs. I am happy to pay tax on my Irish earnings, but because of this, would I expected to pay tax on my foreign earnings? I cant figure out the double taxation treaty agreement. Its all so confusing. I think I am classified as a resident as I will have been here more than 280 days over a 2 year period.

I'd appreciate any advice, as I need to figure out today if I can take on this work or not.

Kind Regards,

You need not to have been in Ireland for 183 days in any rolling relevant period if you want to ensure that your UAE salary is not taxable in Ireland. Usually, you have to remain outside of Ireland for more than one complete tax year to get this benefit. What have been or will be your movements? Be careful, if you manage to screw it up you will have a large Irish tax bill. Any income you generate in Ireland will continue to be taxable here, come what may.

y0ssar1an22

if you are resident, i am gonna presume you are also ordinarily resident and domiciled in ireland, therefore worldwide income needs to be declared.

Article 15 INCOME FROM EMPLOYMENT
Subject to the provisions of Articles 16,18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State (UAE in your case) in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State.

the agreement then goes on to say:

Article 22 ELIMINATION OF DOUBLE TAXATION
Subject to the provisions of the laws of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland (which shall not affect the general principle hereof) -
(a) United Arab Emirates tax payable under the laws of the United Arab Emirates and in accordance with this Convention, whether directly or by deduction, on profits, income or gains from sources within the United Arab Emirates (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or gains by reference to which United Arab Emirates tax is computed;

these 2 points contradict each other, by my reading of the DTA anyway.

i will read in more detail tomorrow

James Bond Junior

Have a quick look at this. Also in the ME but stuck for the summer. Enjoy your summer in Ireland.

https://www.boards.ie/vbulletin/showthread.php?t=2058014888

Marcusm

y0ssar1an22 wrote: »

if you are resident, i am gonna presume you are also ordinarily resident and domiciled in ireland, therefore worldwide income needs to be declared.

Article 15 INCOME FROM EMPLOYMENT
Subject to the provisions of Articles 16,18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State (UAE in your case) in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State.

the agreement then goes on to say:

Article 22 ELIMINATION OF DOUBLE TAXATION
Subject to the provisions of the laws of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland (which shall not affect the general principle hereof) -
(a) United Arab Emirates tax payable under the laws of the United Arab Emirates and in accordance with this Convention, whether directly or by deduction, on profits, income or gains from sources within the United Arab Emirates (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or gains by reference to which United Arab Emirates tax is computed;

these 2 points contradict each other, by my reading of the DTA anyway.

i will read in more detail tomorrow

There is no conflict; a resident of Ireland (183 days under the DTA) might well derive UAE employment income. There is a provision for a credit for UAE tax but that is a dead letter as there is no UAE tax. As I have set out above, the real question for the OP is the period they spend in Ireland and whether they are Irish resident for DTA purposes (as opposed to Irish domestic law purposes).