Foreign income: how to treat international earnings

IPanel E: Foreign Income — Page 15 Lines 301-324

N general, individuals who are resident in Ireland and are from Ireland are taxable on their worldwide income. Assuming you are such an individual, you should complete the various types of foreign income listed in Panel E.

Foreign dividend income is broken down into Great Britain and Northern Ireland dividends, US dividends, Canadian dividends and other dividends. Remember only the net Great Britain and Northern Ireland dividends should be reported and that any encashment taxes paid on US and Canadian dividends are listed.

Likewise, deposit interest income is sub-divided into UK, EU and non-EU interest and you should report any taxes deducted in the relevant jurisdiction as you may be entitled to double taxation relief.

You may have worked abroad previously and are now in receipt of foreign pension income and this should be reported at line 302.

Where you are resident but not domiciled in Ireland and have ticked this box at line 17 of the Form 11, you are assessable on your Irish source income including income attributable to the performance of the duties of a foreign employment in Ireland and remittances of other foreign income to Ireland, that is, a transfer of foreign income into Ireland e.g. by bank wire transfer.

If you are such a person, generally you should only report the amounts of foreign income remitted to Ireland in the relevant lines in Panel E (lines 301 to 319)

FOREIGN RENTAL INCOME — LINE 315

The gross amount of foreign rental income received and expenses incurred on the rental property are to be included in this section. Capital allowances for the current year and any capital allowances and unused losses from a prior year should also be included here. Remember foreign rental losses may only be offset against foreign rental profits.

FOREIGN BANK ACCOUNTS OPENED IN 2016 — LINE 320

Where you or your spouse or civil partner, opened foreign bank accounts during the year, you are required to provide information in relation to such accounts including the amount of the initial deposit and other details as outlined at line 320.

FOREIGN LIFE POLICIES/ OFFSHORE FUNDS/OTHER OFFSHORE PRODUCTS — LINES 321 TO 324

If you have invested in any of these policies or products you should seek advice from a professional tax adviser as the reporting obligations on the Form 11 are both complex and onerous.