My understanding is that this question relates to an Irish citizen whose principal work of 3 to 4 days per week is performed in another EU country and who spends the remainder of his or her time in the State. It has not been confirmed whether the principal work concerned refers to an Irish or foreign employment and whether the time spent in the State is for work or personal reasons. Moreover, information concerning the individual’s Irish tax residence and domicile position is not provided. In such circumstances, it is only possible to give an overview of the taxation provisions as they apply generally.
I am advised by Revenue that an individual’s Irish income tax position will depend on the source of the income and his or her tax residence position.
A statutory residency test applies, whereby an individual is regarded as resident in the State for tax purposes for a tax year if he or she is present in the State for -
1. 183 days in that tax year, or
2. 280 days between that tax year and the previous tax year with a minimum of 30 days in any year.
In certain circumstances, an individual may also elect to be resident in the State for a tax year. Further guidance material regarding tax residency rules and the concept of domicile can be found on Revenue’s website, available here.
Where an individual is considered tax resident and domiciled in the State for a tax year, he or she will be taxable on his or her worldwide income for that year. This is subject to any relief under the terms of a relevant Double Taxation Agreement (DTA).
Where an individual is not tax resident, but is ordinarily resident and domiciled in the State, he or she will be taxable on his or her worldwide income with the exception of foreign employment income earned wholly abroad together with any other foreign source income, provided it is less than €3,810. This is also subject to any relief due under the terms of a relevant DTA.
Where an individual is neither tax resident nor ordinarily resident in the State, he or she will be liable to Irish income tax on his or her Irish source income only. This position applies regardless of where the individual is domiciled.
Where an individual is tax resident, but not domiciled, in the State, he or she will be liable to Irish income tax on both his or her Irish source income and his or her foreign income to the extent it is remitted.
Where an individual is not tax resident in the State but is ordinarily resident in, and not domiciled in, the State, he or she will be liable to Irish tax on his or her Irish source income and his or her foreign income to the extent it is remitted. However, income from an employment all duties of which are performed outside the State is not liable to Irish income tax, even if remitted.