Tax in 2 countries?

S

Seaniemed

Registered User
Messages
93
Hi all,

This has probably been raised before but I cant find anything on a search.

I am a doctor who has been employed by the HSE on a base salary of €30,000 with overtime bringing it to €45-50,000. I moved to New Zealand to take up work there in July 2013.

I subsequently applied to Revenue for a tax refund as I am not using my tax credits for the 2nd 6 months of the year.

However they asked me to reapply in January with evidence of worldwide income.

Rumours abound amongst my colleagues in similar situations that I will not get the same amount of refund as i would if I became unemployed, even though to my mind it is the same situation i.e., either way I will not work in Ireland again in 2013 at least.

Can anyone shed a bit of light on the situation? I understand that NZ and IE have taxation agreements, but these seem to exist to make sure I'm not fooling them into thinking I'm paying tax in the other jurisdiction and vice versa.

Essentially my question is: Am I still entitled to a refund matching the return of my tax credits and recalculation of my tax bill to reflect my 6 months income in ireland? Or are they going to dock me because I'm earning elsewhere?
 
There are a few more detailed rules but basically if you lived here for over 183 days you are considered resident here for that year and you will be taxed on your worldwide income. You will normally get a credit for tax paid in another country if we have a treaty with them.
Hence the reason the Revenue want to wait until next January.
 
Thanks Joe

So essentially They'll say "you owe us for NZ salary but you've provided evidence of tax paid so we wont tax you on it"?

Sound
 
@seaniemed is it your intention not to return to Ireland in 2014? You should qualify for split year relief of taking up PAYE Employment in New Zealand which would mean that you are deemed to be non resident from the date of departure. Not quiet sure what exactly Revenue are getting at.
 
Me neither, i need to speak to the lady who sent me the letter I suppose. I do intend to come back in 2014 but it will be in the latter half of the year...
 
Ah that answers it, you are not entitled to split year relief for short periods of absence. You will be resident here in 2013 and 2014 and assuming that your Irish then will be taxed on worldwide income with a tax credit for tax paid. Similar to people who live here.
 
wait does that mean that if NZ tax isnt as much as my Irish tax would have been, they'll tax me more?

This post will be deleted if not edited immediately
 
Just checked... 189 days in the country in 2013. DAMN.

Right, that's it. I'm going on strike.
 
Seaniemed said:
Just checked... 189 days in the country in 2013. DAMN.

Right, that's it. I'm going on strike.
Click to expand...

It's not this year that's the problem for you in obtaining split year relief, it's next year.

If you don't expect to be in Ireland for at least 91 days next year (and thereby being resident under the 280-day test) then you would be entitled to split year relief.
 
So by leaving after 183 days in 2013, and spending >91 days in ireland in 2014, I don't get any relief?
 
You must log in or register to reply here.
Back
Top