Income tax - moving to the states

Hi

My company has asked me to take up a position in the states for at least two years and perhaps indefinitely ( depending on how I like it). I am a little puzzled because they tell me that I will still pay Irish tax, eventhough I am moving next January and will only be returning to Ireland for holidays. I thought that I would become an Irish non-resident and pay the appropriate income tax in the states (which seems to be a lower percentage)

Can anyone explain ?

I would suggest that should not be paying Irish tax. Even if you are staying on the payroll your company may be able to apply for a PAYE exclusion order that would enable them to pay your salary without deduction of Irish tax. I'd suggest your payroll person call the PAYE employer hotline and they should be able to provide more guidance on the matter.

As you are going over for a trial period, they may not be transferring your job to the US and may be using some form of secondment. From a tax perspective, if you remain an Irish company employee until you decide to make the move permanent, they may be tax equalizing you to your Irish earnings. Your living and/ or working location in the US will impact the level of tax that you pay due to different state income tax levels. There is probably also an impact on the type of work Visa that you would be getting.

If you have other income in Ireland, e.g. rental / investment etc. I would strongly recommend that you request that your employer engage a tax advisor to work through your specific situation. It is important to remember that tax is a personal responsibility, at the end of the day the revenue authorities will chase you for unpaid income taxes not your employer.

Agree with above - your employer may be tax equalising you or tax protecting you in respect of your employment income.

You are likely to have US and Irish tax filings with claims under the Double Tax Agreement.

Speak to your HR department to clarify the position.

www.taxingtimes.ie

Thanks all for your input