Lines 16 to 21 — Res­i­dence sta­tus

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE - TOP TIP

THIS sec­tion of the Form 11 may be of in­ter­est to read­ers who have moved here from abroad. In gen­eral, in­di­vid­u­als who are res­i­dent in Ire­land, have lived all their lives in the coun­try and are from Ire­land are tax­able on their world-wide in­come and this is as­sumed to be the case un­less you tick the boxes at lines 16, 17 or 18.

You will be re­garded as res­i­dent in Ire­land in the year 2016 if you spent: 183 days or more in Ire­land, for any pur­pose, in 2016, or 280 days or more in Ire­land com­bin­ing the num­ber of days spent in Ire­land in 2016 and 2015. How­ever, this test will not ap­ply to make you res­i­dent if you spent 30 days or less in Ire­land in 2016.

Cau­tion — A day is one on which you are present in Ire­land at any time dur­ing the day. So, for ex­am­ple, an early morn­ing flight to Lon­don must still be counted as a day here. LINE 17 — THE RE­MIT­TANCE BA­SIS OF TAX­A­TION I CAME TO LIVE IN IRE­LAND FROM ABROAD A FEW YEARS AGO. DO I HAVE ANY SPE­CIAL TAX STA­TUS IN IRE­LAND IF I HAVE NON-IR­ISH IN­COME? IF YOU are not orig­i­nally from Ire­land (i.e. you are not domi­ciled* in Ire­land) but are res­i­dent here you should en­sure that you tick the box at line 17 as you are en­ti­tled to a po­ten­tially favourable tax regime called the re­mit­tance ba­sis of tax­a­tion.

*Domi­cile is a com­plex le­gal con­cept. It may, broadly, be in­ter­preted as mean­ing per­ma­nent home in a par­tic­u­lar coun­try with the in­ten­tion of re­sid­ing per­ma­nently in that coun­try. An in­di­vid­ual ac­quires a domi­cile of ori­gin on their birth. Whilst each in­di­vid­ual has a domi­cile, that domi­cile may or may not be the coun­try in which he or she is a tax res­i­dent.

This means that cer­tain types of for­eign sourced in­come is li­able to in­come tax here only if it is re­mit­ted to Ire­land. For ex­am­ple, let’s say you re­ceived div­i­dends from a non-ir­ish com­pany in 2016, then the div­i­dends would only be tax­able in Ire­land to the ex­tent they were re­mit­ted (e.g. a bank wire trans­fer) to Ire­land in 2016.

How­ever, it is im­por­tant to note that this ba­sis of tax­a­tion does not ap­ply to for­eign em­ploy­ment in­come to the ex­tent it is at­trib­ut­able to your work du­ties per­formed in Ire­land. Such in­come is tax­able in full un­der the PAYE sys­tem whether or not re­mit­ted.

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