sandyh2001in
Registered User
- Messages
- 38
Hi I am a non Irish citizen, but tax resident IT contractor working in Dublin.
I am currently under a management company setup who would deduct my expenses from my total salary to arrive at taxable salary and then apply tax and other deductions on the entire lot. Unfortunately this works out to be very expensive for me and I havent been able to retain more than 64 percent of my earnings with this arrangement.
I have spoken to a company who are Europe based (but having a presence in Ireland too) who have offered something radically different. They have offered to pay me a percentage of my total earnings as 'salary' through their Irish payroll. This is only as much that would come under the 20 percent tax bracket.
They propose to pay the entire rest of the earnings as 'allowances' into a non Irish, non UK bank account. They tell me that it then is my responsibility to declare that amount and pay tax on that or not. Good news for me is that this arrangement allows me to keep at least 75 percent of my earnings
Does the above offering sound legal?
Is it not the same thing tax wise for me , the only difference being that in my current arrangement , the tax is calculated and withheld from me in advance of paying me but in this offering they are basically leaving the tax calculation upto me? I have done some research on 'Remittance basis' and this sounds related to my situation.
And as I think more about this, am I even supposed to pay tax on those allowances lodged in a foreign bank account if I choose not to bring it back to Ireland at all? Afterall the salary paid through Irish payroll is being taxed as normal .
Could someone clarify what are my tax liabilities are as a foreign expatriate in Ireland please?
I am currently under a management company setup who would deduct my expenses from my total salary to arrive at taxable salary and then apply tax and other deductions on the entire lot. Unfortunately this works out to be very expensive for me and I havent been able to retain more than 64 percent of my earnings with this arrangement.
I have spoken to a company who are Europe based (but having a presence in Ireland too) who have offered something radically different. They have offered to pay me a percentage of my total earnings as 'salary' through their Irish payroll. This is only as much that would come under the 20 percent tax bracket.
They propose to pay the entire rest of the earnings as 'allowances' into a non Irish, non UK bank account. They tell me that it then is my responsibility to declare that amount and pay tax on that or not. Good news for me is that this arrangement allows me to keep at least 75 percent of my earnings
Does the above offering sound legal?
Is it not the same thing tax wise for me , the only difference being that in my current arrangement , the tax is calculated and withheld from me in advance of paying me but in this offering they are basically leaving the tax calculation upto me? I have done some research on 'Remittance basis' and this sounds related to my situation.
And as I think more about this, am I even supposed to pay tax on those allowances lodged in a foreign bank account if I choose not to bring it back to Ireland at all? Afterall the salary paid through Irish payroll is being taxed as normal .
Could someone clarify what are my tax liabilities are as a foreign expatriate in Ireland please?