IT Contractor: Tax on foreign dividends

B

budrul

Registered User
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I am working as IT contractor in Ireland, my management company has offered me an "international solution" in which they will pay me salary + dividends, these dividends will be foreign income because I will be contracted
by an UK LTD. I was told that I won't have to pay taxes on foreign dividends here in Ireland...

1. Is that true? is this legal?
2. I will be paying taxes because I am going to get a Salary, but they told me that I can pick how much salary and dividends I want. In this case I am thinking about a 20K salary + dividends (rate=400 per day), is this possible? legal? if so... what is the minimum salary I can take?
 
It may be true, it may be legal (at first glance, like the Gama payroll solution, I'm sure it probably is) but you should ask yourself whether you really want to put yourself in the Revenue firing line if they take a view that this is an example of the "aggressive tax avoidance" that they, and their counterparts in the UK, are now attacking with increasing force and resources.

As an accountant who advises technology and other specialist contractors, I wouldn't dream of exposing any of my clients to such a risk, and I'm certainly not alone in that.
 
OK, I see... but then what happens if I create an LTD here in Ireland, and I invoice the clients with my own LTD, can I have my income split in salary+dividends(paying the taxes of course)?
If this is legal... what is the minimum salary I can pay myself before I get considered avoiding taxes?
 
No, I am not domicilied (I dont have a house, but I am renting a room)
I am not still resident ( I came here 14th august 2012)
but I think I will be resident at some point in the future, they told me that there are no taxes on foreign dividends, and seaching in google I found thats true only if the money doesnt remit to Ireland (enters Ireland), I am confused about all this things... is that true?
 
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