Pearse Doherty
Ceist:253. Deputy Pearse Doherty asked the Minister for Finance the reason that a person (details supplied) is taxed as a single person; and if he will make a statement on the matter. [62211/22]
Amharc ar fhreagraTuesday, 13 December 2022
Ceisteanna (253)
Freagraí scríofa
I am informed by Revenue that in cases such as these (that is, where neither spouse or civil partner is resident in the State, but one party is in receipt of employment income which is chargeable to tax in the State) the statutory position is that joint assessment is not available during the tax year. The individual is correctly assessed to tax under separate treatment.
However, there may be cases where:
- both parties are non-resident;
- one party has employment income chargeable to tax in the State; and
- the other party has no income (e.g. the employment of the party working in the State is the only source of income of the couple).
I am advised that if Revenue is satisfied that the above circumstances apply, it is established practice that the aggregation basis may be applied in the normal way; that is, the increased basic personal tax credit (commonly referred to as the married person’s/civil partner’s tax credit) and the increased standard rate tax band may be granted to the person who is working in the State. A claim for such treatment may be made at the end of the tax year by the assessable spouse/civil partner, by completing the relevant income tax return form.
Please note that where the other spouse or civil partner has income in his/her own right, a measure of relief may, depending on the level of that income, be due where the Irish tax payable under separate treatment in respect of the income chargeable to Irish tax exceeds the tax that would have been payable in respect of that income if the total income of both parties had been chargeable to tax on the basis of aggregation.
Further information on aggregation relief may be found on Revenue’s website at: Revenue.ie>life events and personal circumstances>marital-status>marriage-and-civil-partnerships> how your partners residence affects your tax.
Should the individual concerned require any further clarification they can contact Revenue via MyEnquiries or through the National PAYE Helpline on 01-73 83 636.