Non Resident for tax free income

J

janeH

Guest
I have a small internet business and intend on leaving Ireland for 6 months and work abroad in order to not pay tax for one tax year.

Does anyone know if the 6 months needed to be out of Ireland (non resident ) have to within your own tax calender year(ie when you make your annual returns or is it the official tax year January to January ?

Secondly someone mentioned to me that you need to be 3 years non resident to avail of a tax free income, having read the Revenus site this does not seem to be the case but any feedback is appreciated

Any advice is appreciated
 
Firstly, I assume by 'tax' you mean income tax. If this is the case you will have to show the Revenue that you were neither 'resident' nor 'ordinarily resident' in the State for the relevant tax year.

Based on what you outlined in your post, you may pass the ' not resident' test, but not the 'not ordinarily resident' test. Telephone the Revenue, outline the scenario, and they will tell you if you fall outside the net.

Secondly, if you are talking about other taxes, different rules apply.
 
This is a very complicated issue and imho the steps you propose taking will not suffice.
Residency for tax purposes depends on:
Domicile - ie where you were born
Ordinary residency - ie if you have been resident in a country for the previous 3 tax years.
Residency - the 183 day rule.

Essentially you must be tax resident somewhere in the world - as tax rates are lower here than in any non-tax haven - it's probably as easy to pay here.
 
[FONT=&quot]Thank you for the replies.

On the point of the 183 day rule and always having to pay income tax in some country for all earnings.

Is there a possibility to keep moving around for those 6 months out of Ireland on various countries holiday visa and not be required to have to pay tax in any juristiction for that period?

I will ring revenue. I just like to get a little more info before I do rather than sounding like a clueless tax dodger to them.

Thanks[/FONT]
 
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