Domicile is a complex concept of general law. It may, broadly, be interpreted as meaning residence in a particular country with the intention of residing permanently in that country. An individual acquires a domicile of origin on his/her birth. Whilst each individual has a domicile, that domicile may or may not be the country in which he or she is tax resident. An individual is not entitled to claim exemption from Irish tax solely by reason of being non-Irish domiciled. An individual’s liability to Irish tax is affected by an individual’s residence, ordinary residence and domicile. It is not possible to determine how much tax is foregone by reason of an individual claiming to be non-Irish domiciled.
I am assuming that the reference to changes in Budget 2012 refers to the amendment to the Domicile Levy legislation announced in Budget 2012 and implemented in section 136 Finance Act 2012. The Domicile Levy was introduced in the Finance Act 2010 and was charged on an individual: who in any year was Irish domiciled and an Irish citizen; whose worldwide income for the year exceeds €1m; whose Irish located property in the year is greater than €5m, and whose liability to Irish income tax for the year is less than €200,000.
Where a relevant person has paid Irish income tax for a year that person is entitled to a credit for the income tax paid in calculating the amount of the domicile levy for that year.
The amendment introduced in section 136 Finance Act 2012 removed the requirement to be an Irish citizen. The affect of this amendment is that persons who meet the other criteria will be liable to the levy whether or not they are Irish citizens. The returns for the tax year 2012 will be the first returns affected by the amendment. These returns are due to be filed on or before 31 October 2013 or in the case of persons filing their income tax returns using the Revenue Online System (ROS) on or before 15 November 2013. I am informed by the Revenue Commissioners that as the filing deadline has not expired it is not possible at this point to determine how many persons this measure will affect for the tax year 2012.