Mismatch of tax periods for residency - in Ireland and Australia

[LoveTrees]

Hi,

Your opinion would be so welcome!

Irish tax period = 1/1-31/12 each year
Australian tax period = 1/7-30/6 each year

Rule of 182 days or lower in Australia -> not resident for tax purposes

But what if someone is in Australia let's say from mid-Jan next year for a few years onwards? Would you agree that cgt and tax on dividends are to be paid in Ireland if those movements fall on period 15th Jan to 30th Jun and in Australia from 1st Jul onwards?

Thank you all!

 

[dublin67]

Would the 280 day rule in Ireland not have you tax resident in year 2?

 

[LoveTrees]

Excellent @dublin67 !

Thank you so much! I think that rule gives me the answer I needed!

 

[Ciru75]

Would the 280 day rule in Ireland not have you tax resident in year 2?

Only if they're in Ireland for 30 days in the year.

 

[LoveTrees]

@Ciru75 So true! Extract -> "You will not be resident in Ireland if you are here for 30 days or less in a tax year" ( https://www.revenue.ie/en/jobs-and-pensions/tax-residence/resident-for-tax-purposes.aspx ).

I think Australian Tax Office and Revenue.ie would need contacting for an agreement on who taxes what in this original instance.

 

[Ciru75]

Ireland will have some taxing rights as long as you're ordinarily resident. The income is explained on that link but you're also fully within the charge to Irish CGT when ordinarily resident.

The Double Taxation Agreement should deal with any cases where both countries would ordinarily have taxing rights. If it turns out that you're not resident in either country for a few months, I would expect that the dividend withholding tax from wherever the dividend is paid would be your only liability (assuming it's below the amount in the link further up) but I don't know anything about the Australian rules so I can't be sure.

 

[Every_blooming]

your Australian tax residency is not determined by a bright line days test like it is in Ireland. The ATO use the "resides test" as the primary determinant of tax residency. If you arrive in Australia on January 15th 2026 and intend to live there for a few years you will be deemed a tax resident from the day you arrive.