Dáil Éireann Debate, Wednesday - 20 March 2024
234. Deputy Ged Nash asked the Minister for Finance further to Parliamentary Question No. 161 of 5 October 2023, if he remains committed to undertaking a review of the remittance basis of tax and the domicile levy in 2024; if he is aware that this commitment is absent in his reply to Parliamentary Question No. 233 of 1 February 2024; if he will clarify his position; and if he will make a statement on the matter. [12127/24]
View answerAs the Deputy is aware, the Remittance Basis of Taxation (RBT) concerns how non-domiciled Irish residents are taxed on their worldwide income.
The Domicile Levy was introduced in the Finance Act 2010 to ensure that Irish-domiciled individuals who meet certain criteria make a contribution to the exchequer, irrespective of where they are resident for tax purposes. The purpose of the levy is to ensure that individuals with substantial income and assets located in the State make some sort of contribution to the exchequer.
As outlined in a previous PQ response, the Commission on Taxation and Welfare (COTW) considered the remittance basis of taxation in its report entitled ‘Foundations for the Future’ which was published on 14 September 2022. As a matter of taxpayer equity, the Commission recommended that the remittance basis should only be available to resident, but non-domiciled taxpayers, for a maximum period of three years.
In due course my Department will examine all recommendations from the Commission on Taxation and Welfare’s report including the recommendation as highlighted by the Deputy regarding the remittance basis of taxation.
My Department is currently focused on the operation of the domicile levy in particular. It should also be noted that ongoing compliance activity is carried out in this area by the Revenue Commissioners.
