Hi Everyone,
I am Italian and I arrived in Ireland on 03/2019 to work in a very big IT company and to stay with my Irish boyfriend (you are the best!)
I was advised to not sign to AIRE (official register of Italian resident abroad), as I still had to sell my house in Italy, and buy a smaller one (always in Italy, to use when visiting my family).
For Covid reasons, everything was delayed, and I completed the buy/sell operation only in 2022, and I have to pay taxes also in Italy for 2019, 2020, 2021.
For 2019 I paid taxes in Ireland (deducted from my payslip), and an incredibly huge amount of taxes in Italy.
Now my questions are:
1. FROM THE IRISH SIDE:
My employer "grossed up" all the relocation benefits I got: flight, 400 Eur for baggage, one month rent, 9000 Eur of reimbursement for items I needed to start a life here (duvet, TV, vacuum cleaner, pan and pots, toaster, kettle, carpet cleaning of the new rented house, + extra 15 days of rent at their place as I could not find a place, and one month deposit). I have submitted all invoices, and the relocation agency (NEI) reimbursed me.
Yes, I have been lucky to receive all that, but 9000 EUR NET of benefit were transformed into an additional 27000 EUR in my gross salary. They said that it is because they paid taxes for me on that. Obviously, I had to declare my gross income in Italy, where taxes are higher, and this resulted in a tax bill of (12.000 EUR).
Please note that my net Irish salary for that year was 35.000 Eur.
What I am kindly asking you is: are all the refunded benefits really taxable? I am trying to retrieve information on the web, but I just found vague info that there are some benefits that should not be taxed. I am trying to ask my employer, who sends me from one department to another since last March, always pretend (I suppose so, as the emails are written by my boyfriend, who is quite literate), not understand, and get back with the list of items refunded.
2. FROM THE ITALIAN SIDE:
Obviously, I have an Irish payslip. And I pay USC.
Nobody could tell me (also asked Revenue.ie !!!), if my Italian tax consultant should consider it together with PAYE, as taxes paid in Ireland, and deduct it to the amount of taxes I have to pay in my Italian tax declaration. He does not know and told me that if I find evidence, he will deduct the USC amount.
Any suggestion about that?
I find it incredibly generous, that there are people like you, who take the time to share their knowledge and help others.
Thank you all!
I am Italian and I arrived in Ireland on 03/2019 to work in a very big IT company and to stay with my Irish boyfriend (you are the best!)
I was advised to not sign to AIRE (official register of Italian resident abroad), as I still had to sell my house in Italy, and buy a smaller one (always in Italy, to use when visiting my family).
For Covid reasons, everything was delayed, and I completed the buy/sell operation only in 2022, and I have to pay taxes also in Italy for 2019, 2020, 2021.
For 2019 I paid taxes in Ireland (deducted from my payslip), and an incredibly huge amount of taxes in Italy.
Now my questions are:
1. FROM THE IRISH SIDE:
My employer "grossed up" all the relocation benefits I got: flight, 400 Eur for baggage, one month rent, 9000 Eur of reimbursement for items I needed to start a life here (duvet, TV, vacuum cleaner, pan and pots, toaster, kettle, carpet cleaning of the new rented house, + extra 15 days of rent at their place as I could not find a place, and one month deposit). I have submitted all invoices, and the relocation agency (NEI) reimbursed me.
Yes, I have been lucky to receive all that, but 9000 EUR NET of benefit were transformed into an additional 27000 EUR in my gross salary. They said that it is because they paid taxes for me on that. Obviously, I had to declare my gross income in Italy, where taxes are higher, and this resulted in a tax bill of (12.000 EUR).
Please note that my net Irish salary for that year was 35.000 Eur.
What I am kindly asking you is: are all the refunded benefits really taxable? I am trying to retrieve information on the web, but I just found vague info that there are some benefits that should not be taxed. I am trying to ask my employer, who sends me from one department to another since last March, always pretend (I suppose so, as the emails are written by my boyfriend, who is quite literate), not understand, and get back with the list of items refunded.
2. FROM THE ITALIAN SIDE:
Obviously, I have an Irish payslip. And I pay USC.
Nobody could tell me (also asked Revenue.ie !!!), if my Italian tax consultant should consider it together with PAYE, as taxes paid in Ireland, and deduct it to the amount of taxes I have to pay in my Italian tax declaration. He does not know and told me that if I find evidence, he will deduct the USC amount.
Any suggestion about that?
I find it incredibly generous, that there are people like you, who take the time to share their knowledge and help others.
Thank you all!