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Irish Taxes

The short version is this for 2011:

Single & Widowed Persons: No Dependent Children 2011
20% on first 32,800
41% on balance  
   
Single & Widowed Persons: Dependent Children  
20% on first 36,800
41% on balance  
   
Married Couples: One Income  
20% on first 41,800
41% on balance  
   
Married Couples: Two Incomes*  
20% on first 65,600
41% on balance  
   
* Excess over €41,800 (2011) non transferable between spouses  
   
Income Levy -Replaced in 2011 with Universal Social Charge  
2% on first 75,036
4% 99,944
6% on incomes over  

Personal Tax Credit  
Single Person 1,650
Married Couple/Single Parent 3,300
Widow(er) with dependent children
1st year of bereavement;
Year 2
€3,150 and Year 5 at €1,800
3,600
One Parent family 1,650

One major anomaly is the discrimination against families with only one income. This was a social engineering scheme to encourage/force more women into the work force. It was put in place when the boom economy needed more workers. Unfair? Of course! But, now that there are no jobs, it's a great source of government revenue.

The key points of the income tax, including personal allowances and deductions, can be found at the Revenue Commissioner's site. This page will connect you to more information than you'll want to know about the current tax regime.

Tax Filing Help

There are people who actually love delving into the arcane world of international tax codes. It takes all kinds, I guess.

Brid Doherty of DG International Tax is one such person, the kind who flits between international tax regulations and munches numbers for dessert.

So, the first thing you need to know if you're facing the complexities of international tax fillings is that help is available, and at a reasonable rate as these things go. You don't have to be a multi-national corporation to tap into some seriously excellent expertise.

Actually, Brid worked for a number of multinationals where she got her grounding in international tax issues. She enjoyed the "reliable sunny weekends" in Jamaica and the urban delights of London and Dublin.

So, how did she end up in the lovely medieval city of Kilkenny running her own business? That's the oldest tale in the books and one that many of us can relate to. She married a local man....

Brid's move to Kilkenny coincided with the Celtic Tiger splurge in overseas properties. Before long, her firm established a reputation for expertise in foreign tax returns. When the Yanks discovered her practice, her knowledge of IRS tax credits and foreign compliance regulations grew apace.

She's been at this game for twenty years now and is a member of the Chartered Accountants of Ireland. Her firm has expertise dealing with Bulgaria, France, Germany, Hungary, Ireland, Poland, Portugal, Spain, Turkey, UK, USA and more.

Important: For a discount, be sure to mention Move To Ireland when you contact Brid.

DG International Tax
Archers Ave, Kilkenny, Ireland.
Phone in Ireland: 056 778-0852
Intl. Phone: ++ 353 56 778-0852
Email: bdoherty@dgitax.com
Web: www.dgitax.com

Download a USA - Ireland Tax Information Sheet

Overseas Filing Deadlines

Brid Doherty, my trusty advisor on international taxes, reminded me that US citizens located overseas have to file their taxes by the 15th of June. Yes, you get two extra months to do the necessaries. And, no, just because you moved you don't get to skip the necessaries. Blast and humbug!

Individuals owing taxes in Britain have until the 31st of October to file their UK tax return (paper returns) or later if filing electronically.

Lots of pension schemes and dividend payouts withhold the maximum possible tax. That means that some of you have overpaid the tax man, clearly a less than desirable situation. Under certain circumstances, you may have up to three years to reclaim your dosh from the grasp of The Man.

Brid's website tracks these key dates not only for the US and UK, but for dozens of countries. Again, check it out and tell her Scott sent you to get a discount.

Tax Free Interest for Non-Residents

A special point of interest: Investors with overseas addresses earn tax free interest on non-resident bank accounts. You may want to open a savings account with an Irish bank before you move to take advantage of this tax free saving.

Once in the country there are a load of government allowed tax shelters designed to encourage business investments and promote urban renewal. I cover these and other investments on the Investment page.

Residency and Tax Treatment for Monies Made Overseas

Residency rules are as follows: To be considered tax resident in Ireland, the individual must spend either 183 days in Ireland in a tax year or aggregate 280 days in Ireland by aggregating days spent in the current and previous tax years (presence in Ireland of not more than 30 days will not be taken into account for the '280 day' test).

An individual returning to Ireland during a tax year, therefore, may not be resident if he/she does not spend 183 days in Ireland in the year of return. However, the rules do permit the individual to elect to be resident in the year of return on the basis that the individual will be resident in the following year and this can be advantageous in some cases.

The decision to elect to be resident should not be taken lightly as it is irrevocable. The election is normally beneficial for income tax purposes but may have an adverse effect on your capital gains tax position as there is no split year concept for capital gains tax purposes.

For the complete rules regarding residency and monies made overseas spelled out in detail, visit the Revenue Commissioner's site at: http://www.revenue.ie/leaflets/taxguide_chapt3.htm This is a straightforward and understandable guide examining the most commonly asked questions upon moving to Ireland.

There are plenty of other items and links in the Full Site.

Additional topics include tax considerations for those moving to Ireland, double taxation agreements and dealing with overseas taxes, investment advice links, Emergency Tax Rates for new workers, and more.

 


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