Declaration of unremitted foreign income for non domicile

[Every_blooming]

Partner is due to complete an Irish tax return for the 1st time this year. They have non domicile status. She has foreign rental income which remained unremitted abroad and as such is fully exempt from Irish tax. Is this declared on annual tax return or just left out?

 

[AAAContributor]

Is this declared on annual tax return or just left out?

It's left out.

If any foreign rental income is remitted, it would be included in Panel F (Line 316 of the 2023 version of Form 11).

Further info on the Remittance Basis as it relates to Form 11 can be found on page 16 of the Guide to Completing 2023 Pay & File Self-Assessment Returns.

 

[Every_blooming]

Thanks,

We weren't sure if unremitted foreign income was declared but full relief claimed or was simply omitted from the return.

 

[Every_blooming]

As a follow on question: once we are married and if we choose joint assessment as a couple does that change the scenario i.e. Are we then required to declare the unremitted foreign income for the non domiciled and individual as they are now assessed with a domiciled individual? Or am I overthinking this.

 

[Henning G]

The scenario won't change. If your wife has rental income abroad (the remittance basis of assessment applies for rental income), it is still assessable in Ireland only if remitted, either that you are or aren't jointly assessed. As long as she does not transfer that income to you and keeps it separate on her foreign account, she's not due any taxes on that foreign income in Ireland. See paragraph 3.4 of the PDF here

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-01-21a.pdf

 

[Every_blooming]

thanks

 

[nest egg]

What happens if the non-domiciled spouse buys an investment property abroad in their own name, using funds earned in Ireland? (either from their own earnings, or those jointly earned with their domiciled spouse).

Thereafter none of the associated income is ever remitted to Ireland by the non domiciled spouse, is this allowed?

 

[Farma1]

What happens if the non-domiciled spouse buys an investment property abroad in their own name, using funds earned in Ireland? (either from their own earnings, or those jointly earned with their domiciled spouse).

Thereafter none of the associated income is ever remitted to Ireland by the non domiciled spouse, is this allowed?

Yes.