Tuesday, 28 May 2019

Questions (50)

Clare Daly


50. Deputy Clare Daly asked the Minister for Finance if he will liaise with the Revenue Commissioners to address the anomaly that exists regarding non-habitual residents' tax exemptions under Article 19, which excludes civil servants, gardaí and members of the Defence Forces, from availing of such exemptions in Portugal, in view of the fact that holders of other occupations, including semi-State employees, can avail of same; and if he will make a statement on the matter. [22589/19]

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Written answers (Question to Finance)

Article 19 (Government Service) of the Ireland-Portugal Double Taxation Convention follows the standard provisions of double tax conventions internationally concerning the allocation of taxing rights in relation to pensions on foot of central and local government employments. Paragraph 2 of that Article provides that a pension, paid to an individual in respect of services rendered to the State, is taxable only in Ireland - unless the individual is both a resident of, and a national of, Portugal.

The non-habitual resident tax exemption to which the Deputy’s question refers is an exemption provided by Portuguese law: It is not provided under Article 19 or any other provision of the Ireland-Portugal Double Taxation Convention. The terms and scope of, and any perceived anomaly regarding, the exemption are a matter for Portuguese law. Consequently, it is unclear how Revenue or I could have any role in that regard and I am advised by Revenue that it is not its practice to comment on the application of the provisions of the national law of other countries.