Moving money between bank accounts

03-08-2016 09:42PM #1

Hi

My Chinese neighbour moved here permanently in June, so is tax resident in 2016. He wants to move money from a Chinese bank account to an Irish account. The funds were all earned in China, right up until the time he moved.

If he transfers say €50k, does an income tax liability arise? Or does he need to distinguish between funds earned pre 2016 and funds earned in 2016?

Thanks

gerrybbadd · 04-08-2016 11:28AM

stunner dunner wrote: »

Hi

My Chinese neighbour moved here permanently in June, so is tax resident in 2016. He wants to move money from a Chinese bank account to an Irish account. The funds were all earned in China, right up until the time he moved.

If he transfers say €50k, does an income tax liability arise? Or does he need to distinguish between funds earned pre 2016 and funds earned in 2016?

Thanks

The bank will have to report the lodgement to Revenue, but his only liability would be DIRT on the interest earned here in Ireland.

Large lodgements like this have to be reported, to ensure that the proceeds haven't been generated by criminal activities

dbran · 04-08-2016 12:06PM

Only if the foreign income is earned after he became resident and he then remits it to Ireland then there would be an income tax liability. If you become resident part way through the year with the intention to remain resident in the next year then the split year treatment may apply and you only become resident from the date you arrive here.

Dbran

Moving money between bank accounts

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