Tax and filing, income from employment abroad.

Sukhoi35

Hi everyone,

I know that there is a wealth of information on these topics and apologies as I am sure that this question has been asked before but I am a bit of a simpleton and get confused very easily.

My question is this....

I am employed as a Pilot by a company in Malta and I am paying my tax through Malta.
I joined this company in March 2019, still employed.
I am paying roughly 30% of my salary in tax.
This year I bought a house in Ireland with my missus.
I did not work in 2018 and revenue are aware of this. I informed them of my new job last year and they said to file a form 11, declaring worldwide income.

I have read the different tax criteria, resident, non resident and domicile and to be hounest I just can't figure it out and I was hoping someone could dumb it down for me. I reckon I did spend more than 183 days of 2019 out of Ireland.

I had not (like everyone I'm sure) anticipated something of this magnitude(pandemic) and times are tough-ish. Not complaining, just saying need to improvise and replan!

So I suppose my question is- am I liable for tax in Ireland? Am I liable to pay the difference in Ireland as the tax is probably 40+ %.

If you guys couldn't pay would you file so that you were paying 0 or not file anything?
If I am paying my tax in Malta do I need to file anything at all?!!

I want to keep my tax affairs in order but as I said I had not anticipated my salary would be halved and houses and weddings ain't cheap!

Anyway all help or advice genuinely appreciated. Feel free to PM also.

Thanks a lot,

Take Care.

Sukhoi35

Anyone please?

1991hun

Hi there

First things first. You need to determine your tax residency position to see what you are liable to tax on in Ireland.

An individual is resident in Ireland if they spend 183 days in one calendar year, or 280 days in two consecutive years with at least 30 days in both years.
An individual is ordinarily resident in Ireland if they are resident for 3 consecutive years, in the fourth year they are ordinarily resident
A country of domicile is where you are born, your ultimate home and where you have strongest families and social ties to, even if you no longer live there.

Did you spend all of 2018 in Ireland? If so, you are likely resident in 2019 based on 'look back' rule. Are you ordinarily resident and domicile in Ireland? Once you confirm this, I can elaborate on what you are likely taxable on in Ireland.

Thanks!

Sukhoi35

Hi 1991,

Thanks for the info.

Yes for 2018 I would have spent 90% of my time in Ireland.

I'm not sure how difficult it would be to just say otherwise, should it be of benefit to me.

And to confirm again, I started the job in March 2019 and have been employed (and paying taxes in Malta) up to now, and hope to keep doing so.

So do you think I am liable?

Do you think I can ommit a return this year?

And what would be the possible issues I could run into down the road?

As I said I want to keep everything above board and I anticipate Ireland will always be my home, but I had not planned for the current situation obviously.

Thanks again for the help.

marizpan

Had you considered going to an accountant or tax advisor?

Lots of issues to consider over a forum

-domicile
-tax residence
-where is the sch E work carried out
-is there a DTA where the employment is carried out etc etc etc