Are Authors taxed?

[Palantir_Use]

I recently signed a couple of contracts with an American publishing company which may result in some (small - 1-2k) payouts during the next financial year.

what are the tax implications of these payments ... bearing in mind that these payments are ...

1. Made in the US, but paid by international draft and posted to me.
2. Made in full compensation to purchase the Intellectual Property of the contracted book for publication? (e.g. I do not retain the rights to the "Royalties")

It is my understanding that Royalties are (or were) tax free, but is such a front-loaded puchase of the IP also covered?

 

[Brendan Burgess]

Point 1 is irrelevant. If you are tax resident in Ireland, you are liable to tax on your income worldwide.

Authors and other artists can claim artistic exemption if their work has artistic or cultural merit. This has been interpreted very widely. You can get full details [broken link removed]

I don't know about patents. Do a search on the Revenue site.

Brendan

 

[nmh001]

its not a patent its an upfront royalty payment. my reading is that this does qualify for the exemption - see http://www.irishstatutebook.ie/1997/en/act/pub/0039/sec0195.html#zza39y1997s195

but you need to apply to revenue for this so follow Brendan's link for info

also note that the tax exemption relates to income tax only - there is no exemption from prsi/levies. this is often overlooked