As the Brexit resolution continues to roll on, employers and employees are increasingly seeking advice in relation to payroll taxes and income tax obligations in Ireland.
Non-Irish Domiciled Status – Brexit considerations
There is no definition of domicile in Irish tax law and the determining principles are found in case law. In effect, your domicile is a reflection of where you regard your ‘permanent home’.
There are several factors to be taken into account such as country of birth, centre of principle interests, where your family is from and living, where your assets are held and location of a burial plot. This is different from your tax residence.
Non-Irish-domiciled individuals are only subject to Irish tax on Irish source income and foreign income to the extent that it is remitted to the State.
Last year, 163,000 applications for Irish passports were received from the United Kingdom, to apply for Irish passports in order to facilitate travel within the EU post Brexit.
Is there a concern that individuals who apply for an Irish passport may be regarded as acquiring an Irish domicile of choice? Therefore, resulting in no longer being able to avail of the ‘remittance basis of taxation’?.
Citizenship and nationality do not necessarily determine a person’s domicile, though it may be a factor to consider where the position is otherwise uncertain. It is our view that an application for an Irish passport in itself should not affect your domicile.
You may wish, however, to retain your UK passport, and should be able to demonstrate your intention to return to the UK as your ‘permanent home’ if you wish to retain your UK domicile status.
We work closely with our international Baker Tilly network to ensure our advice covers all potential double tax issues and offer international groups the necessary local knowledge. If you are a business with a global workforce looking to establish in Ireland, we would recommend you speak to us.