# Moving to Work in Italy, Can I claim tax back?



## BookOfJ (27 Feb 2011)

I am Italian. I will move back to Italy for good by the end of April. I will be working here until the end of April though. Then, I will start working right away with another company in Italy. This means I will be employed all year long within EU. My salary is more than 50k per year.

I would like to know if I can claim tax back via Form P50. I'm not sure if they have any kinds of tax agreement within EU.

Thank You


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## stephen1381 (27 Feb 2011)

do these help? Probably best to contact the Revenue

http://www.askaboutmoney.com/showthread.php?t=956

http://www.boards.ie/vbulletin/showthread.php?p=63232589


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## Greta (27 Feb 2011)

Of course you can claim back tax as you will have a whole year's tax credits and standard rate band in 2011, but will actually only be working here for 3 months. So you should have all or most of the tax paid in 2011 refunded by the Revenue. 

Yes, do contact them and tell them you are leaving Ireland permanently.


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## BookOfJ (27 Feb 2011)

Thank you very much! 
I guess I can claim tax back by post from Italy.


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## Sue Ellen (27 Feb 2011)

Presumably because you are Italian the double taxation treaty between Ireland and Italy does not affect this refund?  It would appear to be a different situation for Irish people as  might lead one to believe?


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## BookOfJ (1 Mar 2011)

I have read this over and over. revenue.ie/en/practitioner/law/double/italy.html (sorry, can't post full url)

It's quite difficult for me to understand as English is not my mother tongue. However, I can't find any parts talking about income tax credit. Just hope that I can get some refund without any problems.


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## BookOfJ (1 Mar 2011)

I found this part in Article 21 from the link above. I'm not sure if it's related to my case or not. Can someone help me?

Thanks



> In the case of a resident of Italy, the Italian Republic in determining  its   income taxes specified in Article 2 of this Convention in the case  of its   residents or companies may, regardless of any other provision  of this   Convention, include in the basis upon which such taxes are  imposed all items of   income; the Italian Republic shall, however,  deduct from the taxes so calculated   the Irish tax on income (not  exempt in Ireland under this Convention) in the   following manner:
> 
> if the item of income is, according to Italian law, subjected to  the tax on   income from movable wealth the tax paid, directly or by  deduction, in Ireland   shall be deducted from the tax on income from  movable wealth, and from the taxes   imposed in respect of the same  income, but in an amount not exceeding that   proportion of the  aforesaid Italian tax which such item of income bears to the   entire  income.
> Where the tax paid in Ireland on such income is higher that the    deduction so calculated the difference shall be deducted from the  complementary   tax or from the tax on companies, as the case may be,  but in an amount not   exceeding that proportion of such complementary  or company tax which the item of   income bears to the entire income;
> if the item of income is subjected only to the complementary tax  or to the tax   on companies, the deduction shall be granted from the  complementary tax or from   the tax on companies, as the case may be,  but only for that part of the tax paid   in Ireland which exceeds 27 per  cent of such item of income.  The deduction   shall not, however,  exceed that proportion of the complementary tax or of the   tax on  companies which such income bears to the entire income.


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## Greta (1 Mar 2011)

Sue Ellen said:


> Presumably because you are Italian the double taxation treaty between Ireland and Italy does not affect this refund?  It would appear to be a different situation for Irish people as  might lead one to believe?



It doesn't matter for this refund, if OP is Irish or Italian. He is leaving Ireland permanently, not on an overseas secondment by an Irish employer, for example. Therefore, he won't be taxed on his Italian employment income, arising after he leaves Ireland. So he will have only 3 months' worth of income in 2011 tax year, but will still be entitled to the full year's tax credits and standard-rated band. Hence the refund. 

It is based on the change of residency, not on citizenship. The double taxation agreement should then exempt him from having to pay tax on Irish employment income in Italy. But that is not what he is asking about. As far as Irish tax refund is concerned, he should just go to the tax office and apply for it when he is finishing work in Ireland.


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## Greta (1 Mar 2011)

BookOfJ said:


> I found this part in Article 21 from the link above. I'm not sure if it's related to my case or not. Can someone help me?
> 
> Thanks



It's not related to your case.

This is relevant: http://www.revenue.ie/en/tax/it/residence.html



> What is split year and who does it apply to ?
> 
> Person coming to reside here (and will be resident in the following year) :
> Are regarded as resident from the date of arrival and liable to pay income tax on all income arising from that date. Generally, full tax credits are allowable on a cumulative basis.
> ...



Cumulative means you get full year's tax credits even though you are only here for part of the tax year. Because of this a refund will arise, claim it and that's it.

In practice you will probably not get the refund before you leave Ireland, so it will be useful if you have an Irish bank account with the facility to transfer money abroad (to Italy) online. If you leave your Italian address to the Revenue, they'll send you the cheque, you can then post it to your Irish bank account and then transfer the money to Italy.

End of story


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## BookOfJ (2 Mar 2011)

Greta, Thank You very much for your kindness!


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## Mrs Vimes (2 Mar 2011)

Greta said:


> If you leave your Italian address to the Revenue, they'll send you the cheque, you can then post it to your Irish bank account and then transfer the money to Italy.



or even give Revenue your bank details on the P50 and have it lodged directly.


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## Lou34 (3 Mar 2011)

Book of J - I left Ireland in August 2009 and moved to Holland so a similar situation I guess.  

You will be taxed normally until you leave.  You should then submit a P50.

Calculate what tax you should pay if your four months' salary had been your full salary for the year.	

Your refund will be the difference.	

In my case it was as follows:-

8 Months working in Ireland 2009	
Total Income Earned	 27,501.70 
Tax @ 20%	 5,500.34 
Less Tax Credits	 3,710.00 
Tax Liability	 1,790.34 

Total Tax Paid	 3,706.33 
Minus Liability	 1,790.34 
Total Refund	 1,915.99 

Hope that helps - also my husband is Dutch and he also got the refund from his work in Ireland in 2009 so no issues there!


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## BookOfJ (9 Mar 2011)

Thank You Very Much Mrs.Vimes and Lou34!

I guess I will have more than 3,000 euro back!!!!


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