Working Abroad Tax Credits

[dodo]

If someone moved away to a EU country to work with their current American company. Where they would pay the local income taxes of Country they now live in.
The earnings they get from a rental in Ireland would be paid to Irish revenue so would they be entitled to the 3300 Tax credits also and claim this as relief against the profit of the rental?.

 

[dublin67]

A non-resident Irish citizen (or perhaps EU also) can get personal tax credits multiplied by Irish income/worldwide income. For a married credit my understanding is that the spouse would need to have all their income within the charge to Irish tax.

 

[dodo]

A non-resident Irish citizen (or perhaps EU also) can get personal tax credits multiplied by Irish income/worldwide income. For a married credit my understanding is that the spouse would need to have all their income within the charge to Irish tax.

If it was a single person with no spouse ,what would that entail, tks

 

[dublin67]

If it was a single person with no spouse ,what would that entail, tks

In that case it would be the €3,300 X Irish income/worldwide income. €3,300 = employee tax credit of 1650 and personal tax credit of 1650

 

[dodo]

In that case it would be the €3,300 X Irish income/worldwide income. €3,300 = employee tax credit of 1650 and personal tax credit of 1650

So if you pay income on your salary in eg Netherlands as which would be the case as would be tax compliant there. So does that mean the 3,300 Irish tax credits would be allowed to offset against eg 10k profit from Irish rental. Irish citizen by the way. Tks

 

[plant43]

I don't think you get 3300 tax credits, I think it's only 1650 if you are non-resident. As mentioned above the actual amount of tax credits is based on the proportion of your worldwide income compared to Irish income. Revenue have a couple of examples

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-45/45-01-01.pdf

 

[dodo]

Update from Revenue , Using a sample earnings, Netherlands salary 100K , Irish Rent for year 12K So what would the tax on the 12K be. And as standard rate cut off point is allowed does that mean 20% tax after normal tax reliefs eg interest on mortgage, buying a new fridge .

I relation to tax credits; as a non-resident you are entitled to an apportionment of your tax credits. The formula is: Irish Income/world income * total credits due. Therefor if for example your Irish rental income was 30% of your total world income then you would receive 30% of your allowable tax credits. Your standard rate cut off point is allowed in full and does not need to be apportioned.