Sole Trader + Tax

Hi,

I wonder if I work over the internet for an EU country (Czech Rep.) and I work under their local trade certificate, i.e., I'm gonna be taxed there plus I'm gonna have to pay social & health contributions there, whether I have to pay the PRSI & Health contributions here in Ireland from the same income again?

(I live in Ireland, declare all my income from Ireland and abroad in Ireland and I know that I shouldn't be taxed twice, I'm not so sure about the PRSI&Health though. I asked at the Revenue Office and the woman working there told me that I shouldn't have to pay it again, but I don't think she really knew the answer - I'm afraid she just said it to get rid of me - I believe they're all instructed there to say "there's no double taxation", but does it really apply to social&health contrib. as well?)

Example: I earn 1000 EUR in the Czech Rep., I'm gonna be taxed there 21% (210 EUR) plus 5% soc.+health (50 EUR). My net income will be 740 EUR out of 1000 EUR. Will I have to pay another 5% (50 EUR) on PRSI&Health in Ireland?

You need to get professional taxation advice in relation to this. The topic is quite specialised and would required knowledge of Ireland\Czech double taxation treaty.

If you are resident in Ireland, you will probably be taxed in Ireland and allowed a tax credit for the tax paid in the Czech Rep depending on the treaty.

Also, why are you working under their local trade cert. Do you really need to do this?

If your income is taxable in Ireland, you will also be liable for PRSI assuming you meet the normal requirement.

Thank you for you reply.

Well the reason I'm considering to work under the Czech trade certificate (my job is a translation over the net) is because it is more attractive for the Czech clients - they dont have to treat my invoices as foreign (ie easier for their accounting, but its also psychological). I'm just about to send my first invoice.

The problem is that according to the Czech commercial law this invoice needs (otherwise it is fined): my name, address, ID number (PPS) and a number and authority at which I'm registered as a sole trader. Equivalent of the latter doesn't really exist in Ireland (since you dont have to register as a sole trader at any trade office). The only thing I can fill there is that "I'm registered as a sole trader at Limerick's Revenue Office under my PPS"). So I'm afraid it won't pass (though I should try it coz I dont have any idea what else to fill in).