working abroad

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Maximus152

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Hi all,
question: I will be working in another country for approx 200 days next year (start in new year). Employer in Ireland will be paying my salary. Will I be entitelled to a tax exemption, i.e will I have to pay tax, does any one know as I have to accept this offer in coming weeks.
You can give me an example if it makes it easier i.e
John earns 60 k per anum.
John spends 6.5 months in foriegn country.
John is/is not entitelled to tax exemption?
John will/will not pay tax as normal?

Really I want to know if there is any benifet to me for putting myself a 1000 miles away from my family for this time, if not well nothing ventured nothing gained, but if there is I think I should know.

I think you get the picture, any help will be welcome.

Thank you
Maximus
 
It is likely that you will reamin resident in Ireland for tax purposes, and possibly also be tax resident in the other country.

You will therefore be taxable in Ireland on all of your income earned while overseas.

You should speak to your HR department, as they usually put in place tax equalisation )or protection) packages for secondees - this means that you will remain on Irish PAYE and PRSI, and they will settle any overseas tax liabilities.

In addition, companies usually offer a daily allowance for working overseas - but maybe in this economic climate this will not happen so much.
 
200 days - don't you have to be in Ireland for at least 183 days to be tax resident? Would definitely speak to HR.

In addition, companies usually offer a daily allowance for working overseas - but maybe in this economic climate this will not happen so much.
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I wouldn't bank on this. I'm about to start an overseas contract and while my tax is equalised, there is no cost of living allowance, as Ireland and my destination countryare deemed to be about on par. It depends on your company as to whether COLA is even offered.

Also, one thing I was advised to ensure was that I had no losses due to not being able to claim TRS on my house as I'll be away for more than 183 days next year and it will not be regarded as my PPR. The company have been able to assure me that through tax equalisation I'll get the money back, but it does mean me having to pay the extra myself until year end.
 
Residence is calculated on 183 days in a tax year, but also on a total of 280 days in a tax year and the previous year, so you could be resident in Ireland with less than 183 days.
 
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