Foreign P60

user name said:
Trying to enter Swiss P60 details foreign on Ros. If I go into foreign income, then foreign employments and enter pay and tax i end up with a big enough tax bill am i missing something else.
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Two questions:

- What permit did you have when you earned this income: L, B, B-EU, or G?

L and G are automatically non-resident, but B and B-EU are permeant resident status and may have an impact on how your final Swiss tax bill is calculated.

- The document you are calling a foreign P60, was that issued by your Swiss employer or the Swiss tax office?

If it is the document issued by your employer, then it is not a definitive tax statement, but a statement of facts to be used in the tax calculation. How the tax is actually calculated will depend on the community and canton you stayed in while employed over here.
 
Jim2007 said:
Two questions:

- What permit did you have when you earned this income: L, B, B-EU, or G?

L and G are automatically non-resident, but B and B-EU are permeant resident status and may have an impact on how your final Swiss tax bill is calculated.

- The document you are calling a foreign P60, was that issued by your Swiss employer or the Swiss tax office?

If it is the document issued by your employer, then it is not a definitive tax statement, but a statement of facts to be used in the tax calculation. How the tax is actually calculated will depend on the community and canton you stayed in while employed over here.
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Are you saying he may not actually be liable to any tax in Switzerland, depending on residency status as determined by his work permit? In which case he should seek a refund from the Swiss tax authorities?

I think most of the posters worked on the assumption that:

1. The figure quoted was the actual tax paid in Switzerland
2. OP is taxable in both countries

If the question of liability to Swiss tax is being raised, then equally, the questions of liability to Irish tax and the requirement to file an Irish tax return should also be raised.
 
From Ros

Salary Wife 26000
Foreign Inc 40741
Total Inc 66741

Irish Effective Rate 13.75

Double Taxation Relief 5602.16

Prsi on Foreign Inc 4% 1629.64
Usc also chg on full amount

One other point working through Irish based company who are paying employers prsi here @ 10.75% tax related code H1, so should i tick exempt from prsi option.

Many Thanks
 
smeharg said:
Are you saying he may not actually be liable to any tax in Switzerland, depending on residency status as determined by his work permit? In which case he should seek a refund from the Swiss tax authorities?
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The reverse! Holders of C, B or B-EU permits are automatically considered to be permanent Swiss residents and as such are taxable in Switzerland on all income etc.! It is normally assumed that someone who hold one of the above permits meets the residency criteria under the double tax agreement..

Holders of L permits are assumed to be non resident, but subject to determination by the IOT, the reason being that an L permit can be issued for a period of 3 months to several years. Salaries paid to L, B or B-EU permit holders are subject to a withholding tax...

Since the OP has not told us if he is referring to a document issued by his employer - which would only show the withholding taxes or a determination by the Swiss IOT, it is not possible to conclude what his situation is...

But I would expect that using the withholding tax figure in an Irish return is incorrect, because in fact it could in some circumstances be partially or even fully refunded!!!


Note: Just for information, C permit holders and citizens are not subject to withholding taxes and we receive our salaries gross - we pay taxes once a year in a lump sum.
 
Entering total pay of 48776 and 13637 tax paid. This is what ros have given me. Am i missing something as i just think its a bit high. Thanks





Interest/Income from Securities/Possessions-Self
40324Total Income40324
Net Position

Income*40324Total40324
Irish Effective Rate

Irish Effective Rate12.86
Allowances / Reliefs / Deductions

Total0
Taxable Income

Taxable Income40324
Charged To Tax As Follows

Standard Rate40324 @ 20% =8064.80Total Income Tax8064.80
Credits / Reliefs set against Tax on Income

Double Taxation Relief5185.76Personal Credit2879.04Total8064.80Net Tax Liability0
PRSI/USC/TRS

Universal Social Charge-Self10036 @ 2% =200.72Universal Social Charge-Self5980 @ 4% =239.20Universal Social Charge-Self24308 @ 7% =1701.56Total2141.48
Total Liability

Payable 2141.48
 
Not sure if your issue is with how the calculation works, or what?

Here's the explanation of the calculation nonetheless:

First calculate the Irish tax liability if there was no foreign taxation:

Income 48,776

41,800 @ 20%: 8,360
6,976 @ 41%: 2,860
Total notional tax: 11,220

Less Tax credits:
Married couple: 3,300
PAYE employee: 1,650

Tax payable: 6,270

Tax payable as a % of income: 6270/48776 = 12.86% - Irish effective rate

Next calculate foreign effective rate: 13637/48776 = 27.96% - Foreign effective rate

The amount of Foreign income and tax included on the Irish tax computation is the net foreign income (48,776 - 13,637 = 35,139), regrossed at the lower effective rate, in this case the 12.86%.
So the income is: 35,139/(1-0.1286) = 40,324.
And the credit for foreign tax is: 40,324 @ 12.86% = 5,186.

So you're getting full credit against Irish tax for your foreign tax paid, in a roundabout way. What you are paying is PRSI & USC. If you've already paid PRSI through payroll then you should claim the exemption.
 
Mandlebrot

Thanks for that.

So it is right to be charged USC. And for USC not to be included in effective rate calculation.

Also if person was working abroad for 52 weeks of the year is there anyway they come become exempt from paying irish tax.
 
user name said:
So it is right to be charged USC. And for USC not to be included in effective rate calculation.
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I didn't say it was right, I just said that's the way it's calculated by Revenue... I'm actually in the process of putting together a detailed query for a relative who's been badly affected by the USC treatment of his foreign PAYE income, and its omission from the double taxation relief calculations. I won't be holding my breath on there being a change in interpretation, short of someone going all the way to the ECJ though.

user name said:
Also if person was working abroad for 52 weeks of the year is there anyway they come become exempt from paying irish tax.
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Yeah, it's called being non-resident!
 
Are you non-resident though?! Or rather I should say, WERE you non-resident for the year in question. There's a couple of different tests to be applied.
 
So if you were here for >280 days in total for 2010 and 2011, then you were tax resident here in 2011.

You may not be tax resident here in 2012 though based on what you've said. i.e. not here for >183 days (test 1), and not here for >280 days between 2011&2012.
 
So if not tax resident can it be left off form 11 which has to be prepared for other income
 
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