Bonus earned while tax resident abroad but bonus awarded while resident in Ireland

H

Horatio

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Hope some of you can provide some clarity on this please - Thanks in advance.

A bonus earned for YoA 2021 is earned in 2021 but is not awarded until 2022.
Tax resident out side Ireland for all of 2021.
Now tax resident in Ireland upon receipt of the bonus.

Who is entitled to the tax take on that?
 
No, it's a personal performance + corporate performance bonus from my employer.
 
Last edited:
Is the split year residence relief applicable to your situation?

Split-year treatment in your year of arrival

This page gives details of what split-year treatment is and how to apply
www.revenue.ie www.revenue.ie

Employment income (and only employment income) earned outside the State in the year you become tax resident (2022) up to the date of arrival falls outside the charge to tax, providing you will be tax resident in Ireland in the following year (2023).

If the bonus was paid in February 2022 and you arrived 1 Mar 2022, then even though you are tax resident for 2022, this income is outside the charge to tax. Not sure of the sequencing of your arrival, bonus payment though.

If this relief isn't applicable, it's looking like it is an emolument and subject to Irish tax under Schedule E but I'm not qualified to advise in this area.
 
Tax on PAYE income is due when it is paid - not when it is supposedly earned.
Once worked in a company that paid on the 5th of the following month, meaning in the year I moved job I got some tax back (as December salary was only paid on Jan, ie the next tax year), but then had to pay a bit more in the year a left the place (13 months pay but only 12 months tax credit)
 
AAAContributor said:
Is the split year residence relief applicable to your situation?

Split-year treatment in your year of arrival

This page gives details of what split-year treatment is and how to apply
www.revenue.ie www.revenue.ie

Employment income (and only employment income) earned outside the State in the year you become tax resident (2022) up to the date of arrival falls outside the charge to tax, providing you will be tax resident in Ireland in the following year (2023).

If the bonus was paid in February 2022 and you arrived 1 Mar 2022, then even though you are tax resident for 2022, this income is outside the charge to tax. Not sure of the sequencing of your arrival, bonus payment though.

If this relief isn't applicable, it's looking like it is an emolument and subject to Irish tax under Schedule E but I'm not qualified to advise in this area.
Click to expand...

Thanks for the detailed reply. I'll have a read of the split year rule vs. my case.

I arrived here 1st March & the bonus for year 2021 will be paid to me at the end of March.
 
newirishman said:
Tax on PAYE income is due when it is paid - not when it is supposedly earned.
Once worked in a company that paid on the 5th of the following month, meaning in the year I moved job I got some tax back (as December salary was only paid on Jan, ie the next tax year), but then had to pay a bit more in the year a left the place (13 months pay but only 12 months tax credit)
Click to expand...

Oh really, that's a bummer. Thanks for taking the time to explain that.
 
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