remittance tax

[dual citizen]

I am a resident of the United States. I was born in the US and I am a US Citizen. Because both of my parents were born in Ireland, I am a citizen of Ireland by birth. I have never had the opportunity to travel to Ireland. I believe that I have no income tax liability to Ireland and no filing requirements. Could someone confirm that this is correct?

Also, I was just reading about remittance tax and find it confusing. If I were to travel to Ireland on vacation, would money I brought with me from the US be considered subject to this remittance tax in Ireland? If this would be subject, how is the remittance tax calculated? I have been planning a trip to Ireland so just wanted to get my facts straight before going. Would any money I spend in Ireland using a credit card (including hotel,etc.) fall under this regime?

Last question- and this is off subject of remittance tax - if I were to apply for a "scholarship" under the European Commission of Education and Training, would the value of that scholarship be considered income in Ireland? The scholarship would actually be for a 1 week residency in Italy. Requirements for the scholarship include European citizenship, and my Irish citizenship would be my qualification.

Thanks in advance for your help.
Dual Citizen

 

[funcrusher]

Your income cannot be taxed in Ireland unless you are RESIDENT in Ireland or have income arising in IRELAND. If the latter, you are only taxable on your Irish income (eg rents or interest) in accordance with the double-taxation treaty (go study this). 'Remittance' basis for taxation only applies to non-domiciled people (basically foreigners) who are RESIDENT. It has nothing to do with temporary visitors. Unless your vacation here lasts more than 180 days, you will not be resident. Both taxation legislation and double-taxation treaties usually have special clauses for students and scholarships.

Domicile is a complicated concept originating in English law and is not the same as citizenship. Domicile is in essence your 'homeland', where you expect to return - in your case USA

More details almost certainly on the Irish Revenue Commissioners website

 

[Breninio]

Also, even if you were to become tax resident in Ireland and subject to Irish income tax on the remittance basis, funds accumulated prior to you becoming Irish resident could be remitted without giving rise to Irish income tax. It would be important that any such funds are kept separate from income arising after you become resident.

 

[dual citizen]

Thanks to both of you for the information. Makes sense and good to know as we are considering spending time in Ireland at some point.