A question about tax relief for US withholding tax.

maccoscair · 05-11-2015 08:43PM #1

I am hoping someone can help me with this query.

Lat year I worked for a US based company for part of the year. Withholding tax was deducted at 30% and at the year end I got a Form 1042-S from my employer(Foreign Persons Income subject to withholding tax)

As I am living in Ireland and worked for part of the year here I know that all my income is subject to Irish tax. Is the withholding tax treated the same as PAYE / USC paid on an Irish employment and is offset against my final tax bill or do I have to apply for a tax rebate from the US while having a large tax liability on mu ear end Irish tax return?

CIARAN_BOYLE · 05-11-2015 09:37PM

It differs for different countries, the answer is somewhere below

http://www.revenue.ie/en/practitioner/law/double/usa-1997.html

newacc2015 · 06-11-2015 08:40PM

AFAIK I Ireland has a sweetheart deal on US withholding tax and Irish residences should be taxed at only 15%. Thats apparently the reason why the Heir to the Campbell Soup company lives in Ireland, as they dont have the 25% tax on dividends if they lived in the US but rather the 15% in Ireland

A question about tax relief for US withholding tax.

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