Do I need to file a tax return? ( Non- Domiciled)

T

trader80

Registered User
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7
Hi,

I am confused about the necessity of filing tax return in my situation. I would really appreciate your help about this.

I am a non-domiciled(non-Irish), Irish resident for the last 2 years and have not filed a tax return yet. I have foreign bank and trading accounts that were opened before I came to Ireland. I have foreign income arising from cfd's, shares, fx pairs and commodities trading. I have no other income and the foreign income have never been remitted to Ireland. My partner is a PAYE employee and we only use the money earned by my partner for expenses arising in Ireland. So, my questions are:

1) Do I need to file for tax even though I do not remit any foreign income and have no Irish income? And if so which form should I use?

2) If I open another foreign bank/trading account, do I need to notify revenue and if so through which form?

3) Does my partner need to file anything related to all this?(joint assessment,1 income)

4) Do I need to notify revenue to inform them that I am not domiciled, have foreign income, chose remittance basis taxation but not remitting ?


Thanks
 
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It may be worthwhile getting some professional advice here. The remittance basis of taxation should be available to you on certain categories of income but not all. Income/gains arising from offshore funds, using a tax definition and not a common sense one, may not qualify for the remittance basis. If this is the case then you may be liable to Irish taxation on such income/gains notwithstanding that you are non-Irish domiciled and did not remit the proceeds (of gains/income).

Generally speaking the remittance basis of taxation is great for those who can avail of it but it does not its limitations.
 
Thanks for your reply dublin67, I appreciate it.

I have never traded any instrument that are Irish/European domiciled and no ETF's or offshore funds, although I would like to learn if that would be included in the remittance basis if I traded European domiciled(non-Irish) stock cfds. I am also considering to get professional help ,as you suggest, if the case proves to be though. However,first,if possible, I would like to learn if it would be okay to not file taxes if all my income is compliant with remittance basis taxation.

Thanks again for all the help.
 
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Hi,

I wanted to give a bump to the thread if that's okay. I have read all the threads here about this subject, and there are experts(like @Gordon Gekko) about this in the forum. However, this particular aspect of this subject is never covered. Any help is welcome.
 
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Hello,

The assets that you’ve mentioned sound okay from a remittance basis perspective.

I don’t believe that an income tax return is required.

Is there much involved in terms of value?
 
Hello,

Thank you very much for the response. Actually, there is not much profit yet(under 5-6k per year). However, I do not want to have trouble with the revenue down the road and want to learn about other aspects of it(like "Don't trade European domiciled ETF's or funds or don't forget to pay the tax".

Also, I am going to open another foreign trading account this year and want to learn if I should inform the revenue about it. I am not even registered with the revenue yet(no tax number) since I did not have any business with tax since I arrived. Can/Should I register or inform them about my domicile or foreign income?
 
No need to do anything in my view.

As a rule of thumb, you need to avoid regulated European investment structures (e.g. ETFs).
 
Thanks for all the answers. You saved me from lots of worries.

One last question, there is nothing wrong with my partner receiving my tax credits(joint assessment) for having 1 income in the household, right? I mean, revenue would not consider me working / doing a trade?
 
There was a post a while ago highlighting the investments products can avail of the remittance basis for a non-domiciled individual and the ones that can't avail of the remittance basis. If they fall into the right category, as a non-domiciled then you don't have to pay tax or report them unless you remit then into Ireland. I had kept the list, have a look below. I hope you find it useful

1. Regulated funds domiciled within the EU/EEA or any OECD country (including the US) with which Ireland has a Double Taxation Agreement are treated as offshore funds. Gains arising on the disposal of such funds do not qualify for the remittance basis of taxation. This includes (but is not limited to) UCITS authorised investments within these countries.

2. Irish and EU domiciled Exchange Traded Funds (ETF’s) are subject to the offshore fund regime and gains arising on the disposal of such funds do not qualify for the remittance basis of taxation.

3. ETF’s domiciled in the US, EEA and other OECD countries are NOT treated as offshore funds and are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

4. Unregulated offshore funds domiciled in the EU/EEA or any OECD country with which Ireland has a Double Taxation Agreement, are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

5. Direct investments in foreign/ non-Irish equities are subject to main stream taxes, including income tax (and USC and PRSI) on dividend income and capital gains tax on gains. Therefore, the remittance basis is available.

6. Irish investments (in Irish domiciled funds or Irish equities) should be avoided as any income and gains would not qualify for the remittance basis.
 
trader80 said:
Thanks for all the answers. You saved me from lots of worries.

One last question, there is nothing wrong with my partner receiving my tax credits(joint assessment) for having 1 income in the household, right? I mean, revenue would not consider me working / doing a trade?
Click to expand...
Your partner can only use your tax credits if you are married or a civil partnership. Cohabiting couples (not married) can't transfer allowances/credits to each other.
 
edmondantis12 said:
There was a post a while ago highlighting the investments products can avail of the remittance basis for a non-domiciled individual and the ones that can't avail of the remittance basis. If they fall into the right category, as a non-domiciled then you don't have to pay tax or report them unless you remit then into Ireland. I had kept the list, have a look below. I hope you find it useful

1. Regulated funds domiciled within the EU/EEA or any OECD country (including the US) with which Ireland has a Double Taxation Agreement are treated as offshore funds. Gains arising on the disposal of such funds do not qualify for the remittance basis of taxation. This includes (but is not limited to) UCITS authorised investments within these countries.

2. Irish and EU domiciled Exchange Traded Funds (ETF’s) are subject to the offshore fund regime and gains arising on the disposal of such funds do not qualify for the remittance basis of taxation.

3. ETF’s domiciled in the US, EEA and other OECD countries are NOT treated as offshore funds and are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

4. Unregulated offshore funds domiciled in the EU/EEA or any OECD country with which Ireland has a Double Taxation Agreement, are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

5. Direct investments in foreign/ non-Irish equities are subject to main stream taxes, including income tax (and USC and PRSI) on dividend income and capital gains tax on gains. Therefore, the remittance basis is available.

6. Irish investments (in Irish domiciled funds or Irish equities) should be avoided as any income and gains would not qualify for the remittance basis.
Click to expand...

Thank you very much edmondantis12. Your post is very helpful.

@dublin67 Thanks for the info.
 
Hello,

Sorry for resurrecting the thread but I read an article on revenue guide on bitcoin trading and investing and wanted to learn if it applies to all investment vehicles. I know that I have been told not to worry in my situation but I just wanted to ask one more time on the basis of an article on the independent ie(sorry cannot post the link, but the title is "irish-revenue-gives-guidance-on-how-tax-applies-or-doesnt-to-bitcoin" if anyone is intrested)

It basically says that if you buy bitcoin and hold with the intention of investment, its gain/loss is treated as capital gains/loss. However, if you are actively trading it, it is considered as income and taxed accordingly.

If this applies to all asset classes, should I be liable to income tax since remittance basis does not apply to income tax?
And if so, what is considered active trading?( I don't day trade but do not hold assets more than a month either.)

Thanks
 
Hi,
if you want to complicate your life have a look at where they offer a 6.2% interest rate on deposits. The deposits are converted into bitcoin however. They also do loans. I wouldn't advise doing this as the security of your deposit won't be the same as a bank. In addition if you ask a question the online assistant will come back with a message saying they will get back to you when they are back in work! or something like that. However this is the thin end of the wedge for this stuff trying to go legit. I guess that in this case any gains would be seen as interest?
J
 
edmondantis12 said:
There was a post a while ago highlighting the investments products can avail of the remittance basis for a non-domiciled individual and the ones that can't avail of the remittance basis. If they fall into the right category, as a non-domiciled then you don't have to pay tax or report them unless you remit then into Ireland. I had kept the list, have a look below. I hope you find it useful

1. Regulated funds domiciled within the EU/EEA or any OECD country (including the US) with which Ireland has a Double Taxation Agreement are treated as offshore funds. Gains arising on the disposal of such funds do not qualify for the remittance basis of taxation. This includes (but is not limited to) UCITS authorised investments within these countries.

2. Irish and EU domiciled Exchange Traded Funds (ETF’s) are subject to the offshore fund regime and gains arising on the disposal of such funds do not qualify for the remittance basis of taxation.

3. ETF’s domiciled in the US, EEA and other OECD countries are NOT treated as offshore funds and are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

4. Unregulated offshore funds domiciled in the EU/EEA or any OECD country with which Ireland has a Double Taxation Agreement, are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

5. Direct investments in foreign/ non-Irish equities are subject to main stream taxes, including income tax (and USC and PRSI) on dividend income and capital gains tax on gains. Therefore, the remittance basis is available.

6. Irish investments (in Irish domiciled funds or Irish equities) should be avoided as any income and gains would not qualify for the remittance basis.
Click to expand...
This is the most comprehensive answer I have seen on this question for which I have been looking around for answers for a long time. Thank you! Is there any publicly available (e.g. document by Revenue) on this?
 
FX doesn’t qualify for remittance taxation. There may be other errors above that I haven’t spotted

joom.ag

Remittance Basis Guide v2.0 Version 2

The guide aims to summarise the Remittance basis of taxation in Ireland in order to assist our clients to consider the various trade-offs around the taxation of investment funds for non-domiciled investors. This document has been prepared for information and educational purposes only and should...
joom.ag joom.ag
 
My partner owns a property in her home country, she pays tax on the rental income in her home country. How do I know if she is no domiciled?
 
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edmondantis12 said:
There was a post a while ago highlighting the investments products can avail of the remittance basis for a non-domiciled individual and the ones that can't avail of the remittance basis. If they fall into the right category, as a non-domiciled then you don't have to pay tax or report them unless you remit then into Ireland. I had kept the list, have a look below. I hope you find it useful

1. Regulated funds domiciled within the EU/EEA or any OECD country (including the US) with which Ireland has a Double Taxation Agreement are treated as offshore funds. Gains arising on the disposal of such funds do not qualify for the remittance basis of taxation. This includes (but is not limited to) UCITS authorised investments within these countries.

2. Irish and EU domiciled Exchange Traded Funds (ETF’s) are subject to the offshore fund regime and gains arising on the disposal of such funds do not qualify for the remittance basis of taxation.

3. ETF’s domiciled in the US, EEA and other OECD countries are NOT treated as offshore funds and are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

4. Unregulated offshore funds domiciled in the EU/EEA or any OECD country with which Ireland has a Double Taxation Agreement, are subject to mainstream income tax (including USC and PRSI) and capital gains tax. Therefore, the remittance basis is available.

5. Direct investments in foreign/ non-Irish equities are subject to main stream taxes, including income tax (and USC and PRSI) on dividend income and capital gains tax on gains. Therefore, the remittance basis is available.

6. Irish investments (in Irish domiciled funds or Irish equities) should be avoided as any income and gains would not qualify for the remittance basis.
Click to expand...
Would Bitcoin and cryptocurrencies qualify for the remittance basis, if traded through non-Irish exchanges like Kraken or Binance?
 
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