Paying Tax on Money Earned Abroad

C

chippey

Guest
Hi all,

I was wondering if anyone can help me. My situation is this..

My Irish company moved me out to work in a tax free country 8 months ago (July 09) and paid me out here stating that all/any tax liabilities were my own problem.

My initial plan was to stay here for at least 2 years thus qualifying for non-residency in Ireland and in turn not being liable for any tax. ( I was advised of this before I left). Therefore I have not paid any tax on money earned over here.

However, my situation has changed and I am now returning to Ireland at the end of March putting me only 9 months out of the country. As I understand it I am now liable to pay tax on all my earnings since leaving the country.

Can anyone explain what tax I am liable to pay and how I should go about sorting it out. Is there a self assessment form I should fill out and submit....I know I am liable but just dont know how to calculate/pay it...

Also, I have been advised that I am entitled to full redundancy as I have been with the same company throughout. Is this true?

Does the fact I stopped paying PRSI contributions effect my social welfare entitlements...I have been paying class A PRSI from 2005 to July 09.

Thanks for any help....
 
You need to complete a Form 11 to declare your full income and pay Irish income tax for 2009, and 2010 after the end of the year.

You should look at paying voluntary contributions for PRSI.

I would imagine (without looking further into the matter), that your company was obliged to pay Irish PAYE and PRSI on your income while abroad unless they had applied for an exclusion order to the Revenue, which I think they can only apply for after you are out of the country for a full tax year. However, if they retrospectively paid this, then you would owe this to them anyway, so the overall position would be the same - however, your PRSI contributions would probably be up to date.

This is a complex situation and you should get professional advice if you need help with your tax returns, and clarify the position with the Department regarding your PRSI.


www.taxingtimes.ie
 
Whilst domo has probably accurately reflected the law in practice it is not that clear cut. The 'employer' could make a case that the nature of the relationship with the OP changed and that the contract abroad was not that of a contract of employment. Onus of proof would be tough and I am not entirely sure the DSFA or the revenue would persue the company on this. I feel you have to treat this as S/E income. Your lack of stamp will be a problem as the s/e stamp does not qfy you for unemployment or disability benefit. As Domo states this is complex and you should seek professional advice from a qualified accountant or a practicing Irish Taxation Institute member.
 
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