I wonder if you're being charged USC by the ROS calculation, when you shouldn't be. Can you work out whether USC is being charged on your Swiss earnings?
It's not as straightforward as calculating the Irish tax then taking off the foreign tax paid.
1. Calculate the Irish tax based on gross foreign income to ascertain the effective Irish tax rate.
2. In this case the effective Irish rate (14%) is lower than the effective Swiss rate (29%) so the net income received (ie 48,500 less 13,500 = 35,000) is grossed up at the effective Irish rate to arrive at the amount subject to Irish tax, ie 40,700.
3. Calculate Irish tax on 40,700
4. Give credit for unrelieved foreign tax of 40,700 @ 14% = 5,700.
I think you only see steps 3 & 4 in ROS.
But shouldn't the Irish effective rate calculation include the USC... or shouldn't the same operation be performed for USC as for income tax...
Don't think ROS gives any relief for USC, 14% would seem very low if it did on gross of €48,500.
You're right. I just ran a few test figures and the Irish effective rate calculared by ROS ignores USC.
I think you'd actually need a separate effective rate for USC...
@smeharg jasus no - if you did that our shaggin 'marginal' rate would be in the high forties of fifties - and put a big hole in the sociliasts 'tax the rich' campaign. Whatever Joan Burton stands for, she wont agree to that as the game would be up.
@smeharg jasus no - if you did that our shaggin 'marginal' rate would be in the high forties of fifties - and put a big hole in the sociliasts 'tax the rich' campaign. Whatever Joan Burton stands for, she wont agree to that as the game would be up.
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