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Tax as a dual citizen

  • 11-09-2019 2:00am
    #1
    Registered Users Posts: 19


    I'm from Ireland but I've been living in Canada for 8 years now, currently a permanent resident but thinking about becoming a Canadian citizen. I know we can have dual citizenship in Ireland. My question is; if I return home for a period of time and get a job do I have to pay taxes in Canada as a dual citizen? I would like to be able to work winters in Canada and summers in Ireland.


Comments

  • Registered Users Posts: 26,021 ✭✭✭✭Peregrinus


    (With the exception of US citizenship), citizenship is rarely relevant to tax liabilties. Revenue authorities care about where you are resident, where you are ordinarily resident, where you are domiciled. They mostly do not care what passport(s) you hold; that's not a tax event.

    You need to check out the Ireland/Canada double taxation agreement. Under most DTAs, as a rough rule of thumb, employment income is taxed in the country where the employment is exercised, so your Canadian job would be taxed in Canada, and your Irish job would be taxed in Ireland. But if both countries regard you as a resident (and you'll need to check the definition of "resident" in the DTA) then each would seek to tax you also on your "foreign" employment, but giving you credit for the tax already paid to the foreign revenue authority.

    The upshot is that you'll probably pay the higher of tax at Irish rates, and tax at Canadian rates, on all your employment income.

    Social security is a whole other ball game. You'll pay Canadian social security on your Canadian earnings, and Irish social insurance on your Irish earnings, and you'll end up with an incomplete contribution record in both countries. Not sure what your optimal strategy here is.


  • Registered Users Posts: 2,419 ✭✭✭antix80


    Agreed that citizenship shouldn't come into it. You're resident in Canada for tax purposes, and if you only spend a few months in Ireland during the summer you'll remain resident in Canada. See https://www.revenue.ie/en/jobs-and-pensions/tax-residence/how-to-know-if-you-are-resident-for-tax-purposes.aspx

    I don't see any downsides in becoming a Canadian citizen except you'll have to swear allegiance to the queen.


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