valc said:Can foreign rental income from differnet countries be aggregated to give overall net sum taxable in Ireland
Hi,
I might be wrong, but I thought you would have to declare the full profit of 90k and you only get a credit for tax paid if that country has a double tax treaty with ireland?
I am completing a form 11 at the moment - do I need to declare which country the property is in in order to get the tax credit?
It's worth noting that if a DTA didn't exist it would be the 72K figure you would use with no double tax claim.
Net of expenses not net of foreign tax.
So, profit France 50K tax paid 10K, profit Spain 40K tax paid 8K. You return Case III 90K and claim Double taxation relief of 18K. Quote]
If the irish tax on the french rent would have been 7k and on the spanish 14k I think you can only claim 7k on the french and 8k on the spanish - total 15k. ie. you can't offset the extra french tax against the spanish bit.
on page 4.Foreign tax incurred on one source is not available for set-off against another source
I was under the impression that you first calc the return due in the foreign country and pay the tax accordingly. You then calc the tax due as though the property was an Irish property deducting amounts allowed under Irish law and calc the tax accordingly. You then deduct the tax paid in the foreign country assuming a double tax agreement exists and pay the balance to Irish revenue.
The Revenue on-line does all the calculations for you.
But how do you declare if your foreign tax paid is treaty/nontreaty since the tax treatment is different?
ROS Form11 lets you input the foreign tax, but has nowhere to state whether it is treaty or not treaty
If it's non treaty it's not deductable anyway so there is no problem.
So for non-treaty I would just show my 'Net Profit on Foreign Rental Property' as 72k after deducting the 18k non-treaty tax as an expense from the 100k gross income?
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