Getting paid from abroad, but carrying out the work in Ireland

jimbo007

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Hello,

I'm trying to work out the tax implications of working for a public body full-time in Denmark, but living in Ireland and carrying out the work here. Does anybody know the implications or how this can be set up?

Many thanks.
 
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Hello, As an update, I've contacted the tax office here about this, and I've been told from one person that I have to pay full tax in Denmark even though I'm living here, and that I would pay no tax in Ireland, and another person that I have to contact my local tax authority to set this up. Does anybody know what I have to do? I would be on salary in Denmark, full time, but living in Ireland. Thank you.
 
Hi jimbo, I get paid in a similar way from different countries. Basically you need a letter from the tax authorities clearly stating that you are resident in Ireland for tax purposes. That way you can avail of double-taxation agreements that are in place for certain countries so that you don't have to pay tax in both countries. Just check if there is a double-taxation agreement with Denmark and if so, you will only need to pay tax either here or Denmark.
 
That is interesting!

Where does the letter from the tax authorities have to come from? Do you get it from Ireland and give it to the foreign tax office or vice versa?
 
Thanks for the info Marshmallow!
I was wondering the same thing stefg...

I've found a document on the revenue site (working abroad) which I've read through (can't post a link yet)

It doesn't really tell me the process I have to follow for this though. I'm finding it impossible to find accurate information through ringing the revenue commissioners...

Do I go to my local revenue commissioners and request this letter from them? Then send a copy of this to the employer in Denmark so that they don't tax my salary?

 
Thanks for the info Marshmallow!
I was wondering the same thing stefg...

I've found a document on the revenue site (working abroad) which I've read through (can't post a link yet)

It doesn't really tell me the process I have to follow for this though. I'm finding it impossible to find accurate information through ringing the revenue commissioners...

Do I go to my local revenue commissioners and request this letter from them? Then send a copy of this to the employer in Denmark so that they don't tax my salary?

Yes, that's exactly it and get revenue to phrase it so that it clearly states you are 'resident in Ireland for tax purposes.' When you get the letter give it to whoever will be paying you in Denmark (or wherever tax may be deducted at source) and as long as a double-taxation agreement exists you'll only pay in one country.
 
Send a letter to your inspector of taxes and they will send you a written instruction on how you should be taxed. It's not the sort of thing a Revenuer gets asked that often and can be confusing so hard to rely on telephone information.
Specify in your letter who in Denmark you will be working for as public/private can be an issue in some cases (although that may only be public sector pensions from other countries treated differently).
Sybil
 
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Thanks a lot for the information.
Do you know who I should address the letter to and at what address?
 
As a foreign employer, employing an individual resident in Ireland, your employer will have the obligation to register in Ireland for PAYE, and operate Irish PAYE on your income.

What the procedure in Denmark is, I don't know, but usually in most countries there is the facility not to operate witholing taxes in that country if the employee is non-resident, but there will usually be paperwork involved for the company with the local Revenue authorities.

However, these are not your personal issues, but issues for the company to sort out.

In the long run, if they do not operate the taxes correctly, you will still have to file your returns to sort it all out.

www.taxingtimes.ie
 
Jimbo, If a buisiness activity is carried on in Ireland the Irish state /authorities are entitled to the tax on the activitity what ever it might be. It does not matter where the entity that is going to pay you is located.

It could be in china, russia, Dublin or anywhere else it is irrelevant.

Do not bother with Revenue. The best thing to do is send an invoice for services rendered for the Gross anount . Then in your tax returns before November of the following year include the amount you received as earned income and pay what ever tax is due..
 
Do not bother with Revenue. The best thing to do is send an invoice for services rendered for the Gross anount . Then in your tax returns before November of the following year include the amount you received as earned income and pay what ever tax is due..
Just to be clear, this could only happen if the OP is a contractor providing services, and not an employee - right?
 
Jimbo, If a buisiness activity is carried on in Ireland the Irish state /authorities are entitled to the tax on the activitity what ever it might be. It does not matter where the entity that is going to pay you is located.

Yes, but the OP is merely trying to ensure he does not have to pay tax in both countries ie that his employers in Denmark do not deduct or withold Danish tax on his behalf.
 
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