The definition of remittance of foreign income is very wide for tax purposes. In summary, to illustrate how wide it can be if, for example, you finance personal expenditure in Ireland with borrowings (credit card, personal loan etc) and repay those borrowings with foreign income without that income ever being lodged to an Irish bank account you will be treated for tax purposes as having remitted income to Ireland.
The income must be non irish and non UK to be covered by the remittance basis.
I would suggest you review Section 72 of the Taxes Consolidation Act 1997 for more information.
Among other things the section provides that foreign income applied abroad by a person resident or ordinarily resident in the Ireland in satisfaction of:
- any loan made in Ireland or any interest on such a loan, or
- any loan made outside Ireland and received in or brought to Ireland, or
- any debt incurred in satisfying in whole or in part the above loans,
is to be treated as having been received in Ireland as a remittance of foreign income.
Furthemore, if you
(A) borrow outside of Ireland,
(B) repay those borrowings out of foreign income prior to bringing the borrowed cash to Ireland and
(c) then bring the borrowed cash to Ireland
you will be treated as remitting foreign income to Ireland. This is in accordance with Section 72(2) and Section 72(3) Taxes Consolidation Act 1997.
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Regards,
Mark
I am a non-domiciled Irish resident tax payer, which means I am only taxed in Ireland on foreign investment income which I remit to Ireland. Likewise I can remit capital without liability to income tax. Question: what constitutes a 'remittance of income', apart from the obvious. If eg I save my foreign interest income in a foreign bank account, does it eventually become capital which I can remit tax-free?
I have tried the revenue commissioners website and can't find the answer.