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Double taxation - Ireland and Australia

  • 19-08-2015 9:47am
    #1
    candlegrease
    Registered Users Posts: 475 ✭✭


    I am an Irish citizen recently moved to Australia for employment. I am resident in Australia for tax purposes.

    I am considering buy ishares ETFs with euro held in my Irish bank account.

    Will I be subject to taxation in both countries on both dividends and capital gains? Or are there tax credits I can apply?


Comments

  • #2
    Legend100
    Registered Users Posts: 736 ✭✭✭Legend100


    Hi,

    First things first - what visa are you on?

    If you are not PR - see below

    https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---introduction/

    If you are, then that is a different story!


  • #3
    candlegrease
    Registered Users Posts: 475 ✭✭candlegrease


    Legend100 wrote: »
    Hi,

    First things first - what visa are you on?

    If you are not PR - see below

    https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---introduction/

    If you are, then that is a different story!

    Hi, thanks for response.

    I'm on a 457 visa.


  • #4
    candlegrease
    Registered Users Posts: 475 ✭✭candlegrease


    Helpful link.

    My understanding from that is I'm not subject to taxation on dividends etc as a 457 temporary resident.

    What happens if and when I become PR?


  • #5
    Legend100
    Registered Users Posts: 736 ✭✭✭Legend100


    candlegrease wrote: »
    Helpful link.

    My understanding from that is I'm not subject to taxation on dividends etc as a 457 temporary resident.

    What happens if and when I become PR?

    It would then come down to residency and who has primary taxing rights under the ireland Australia double taxation agreement. Oz like ireland taxes worldwide income when you are tax resident with a permanent visa. I'd have to look at the DTA to determine who has primary taxing rights. Your residence status in Ireland will also come into play.

    How long are you on the 457 at this stage? On it myself, PR application lodged so hopefully get it soon enough


  • #6
    candlegrease
    Registered Users Posts: 475 ✭✭candlegrease


    Legend100 wrote: »
    It would then come down to residency and who has primary taxing rights under the ireland Australia double taxation agreement. Oz like ireland taxes worldwide income when you are tax resident with a permanent visa. I'd have to look at the DTA to determine who has primary taxing rights. Your residence status in Ireland will also come into play.

    How long are you on the 457 at this stage? On it myself, PR application lodged so hopefully get it soon enough

    I've been reading the revenue link: http://www.revenue.ie/en/practitioner/law/double/australia.html

    But there's a lot of legalese I can't make out. I suppose by the time I had PR I would be ordinarily resident in Ireland, if that makes a difference

    Only 2 months into 457. So almost 2 years away from PR, should I desire it.


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  • #7
    Legend100
    Registered Users Posts: 736 ✭✭✭Legend100


    Just as an FYI around PR - there is a misconception that you need to be there 2 years on a 457 before getting it. The two years only means you don't need a skills assessment, you can apply at any time before that but have to get skills assessed. (this is off topic for the tax forum though)

    Been a while since I looked at the residence rules but from memory, as a non resident, ordinary resident and Irish domiciled, you would be liable to tax in Ireland on foreign investment income if it was around ~$4k or over.

    If the divs are irish sourced, Irish tax applies. Where you get the credit for foreign tax is what the DTA will tell you


  • #8
    candlegrease
    Registered Users Posts: 475 ✭✭candlegrease


    Thanks. Any link about liability to tax if >$4k?

    Also, Ireland has an exemption on capital gains tax up to the first 1270 euro I believe. The whole thing is quite confusing. I guess I may just have to wait and see how they tax me.


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