Paying Irish Tax

You will only be liable to Irish income tax from the date of your arrival provided you were non-resident here in the previous year. You will however receive a full year of credits. In order to get tax credits you must obtain a PPS (Personal Public Service) number. To obtain a PPS number you need to present yourself at your local social welfare office together with a form of identification. Once you obtain a PPS number you can register for income tax through myAccount on ROS.ie.

Irish Taxes once Irish Resident

Once resident here any assets you dispose of overseas are subject to Irish Capital Gains Tax at 33%, though this would not include your principal private residence. The amount of CGT you will have to pay here regarding overseas disposals also depends on whether you are domiciled here and on how much of the gain from assets sold outside of Ireland is remitted or brought back to Ireland.

As Irish residents pay capital gains tax on the disposal of their worldwide assets it may be worthwhile disposing of foreign (non Irish) assets before becoming tax resident in Ireland.  Read here on how you become an Irish tax resident.

The Remittance Basis of Taxation

All persons resident or ordinarily resident in the State for tax purposes are liable to CGT. Individuals that are resident and domiciled in Ireland are chargeable on all gains wherever arising, while those who are resident and non- domiciled are liable only in respect of Irish gains and other gains to the extent these gains are remitted to Ireland. Non-residents are only liable in respect of gains made on the disposal of Irish property or mining/exploration rights.

Transfers between spouses do not give rise to a CGT charge – the spouse who received the asset is deemed to have acquired it on the date and at the cost at which the other spouse acquired it. CGT is chargeable at 33% for disposals between 1 January – 30 November, CGT is due to be paid by the 15th December in the same year. For disposals occurring in December, the payment date will be the following 31 January.

 

If you have just moved to Ireland and you need support regarding your tax affairs book a consultation by emailing caroline@charlespcrowley.com