Tax impacts of working from home from abroad?

[abc_xyz]

With lots of people working from home some have been working from home from abroad (eg. search "irishexaminer Google asks staff remote working from abroad to return"). I'm wondering what are the complications of this, for the company and the individual, from the point of view of Irish and foreign taxes (income tax, PRSI, etc)? Is there a particular tipping point, eg is it related to residency or 90 days or the end of the year or something else?

A bit of research found this (search "irishtimes why-multinationals-are-calling-employees-back-to-ireland") which doesn't give any concrete details. All I found on the Revenue website is this (search "revenue moving-or-returning-to-ireland) which is more about moving and working abroad, as opposed to moving abroad for 3, 6, 9 months (or longer) and working and being paid in Ireland. Is there anything on Revenue website, or elsewhere, with concrete details?

Also wasn't there a thing where if you were out of the country for a period of 90 days or more you could claim the tax for that period back - is that abolished?

PS I can't post links so put the search into Google and it's the top result.

 

[Gary017]

Very good information. Thanks for sharing.

 

[abc_xyz]

Very good information. Thanks for sharing.

Thanks but I was hoping someone could point me to more information or knows what the rules are in this area.

 

[jamieos]

My understanding if you are working abroad / ie in Portugal for example for more than 183 days you are liable for tax there. So your Irish company can pay you through their Portuguese entity if they have one. How that would work I’d like to find out. If they don’t have a Portuguese entity and you were PAYE in Ireland this is where it gets difficult for the company. The option is for you to become a contractor in Portugal and look after your tax and accounts yourself.

What I’m trying to figure out is if my company paid me through their Portuguese entity ( for work technically done in Ireland ), would I be taxed in Portugal normally. Which I understand is at a lower rate than I what I would be taxed here. The question I haven’t got answered yet is: The work I’m doing isn’t in Portugal / for a Portuguese company? So does that impact my ability to be taxed at the normal rate in Portugal? Or is it because I’m paid through a Portuguese entity I’m fully in the Portuguese system.

PS
I wanted to link to 2 other threads on this but I’m not allowed for some reason

 

[Sunny]

The issue isn't just with employee tax. Companies need to be very careful with employees working in other countries when they are supposed to be Ireland. The company might be considered to have a presence in that country and be liable for tax. Thats why Google and other companies need to be very careful and are demanding that employees only work where they are supposed to.

 

[Franc1]

All, my 2 cents....

I work for a large U.S. multinational as a software developer and there was a time back 6 or 7 years ago when a lot people in my company were working remotely from abroad despite being employed in Ireland. When I say a long time I mean 8 months or more, then coming back for a few months and so on, they were never registered abroad and were paid in Ireland as if they were sitting in Ireland. I myself back then had some family problems with a ill relative and agreed with my U.S. based manager that I would work from home in France where I'm originally from, rather than from Dublin for a number of months, I think it was 4 or 5 months, he immeditely agreed, I don't think he had a clear understanding of the implications and I didn't either at the time. Then the rules with my company changed and now it's more strict, on a temporary basis you can, but you need to be in Ireland most ot the time. l still do it, every year I work for maybe two or three weeks from home in France especially in the summer and attach a few weeks of holiday as well to escape the miserable irish summer as long as possible. This is never a problem for my company and I guess for the Revenue but if i worked from France for 8 straigh months or more than it would become a problem in this day and age. I think it's probably not a problem with the Irish Revenue since all my taxes are taxed at source either that I'm sitting in France or Ireland but probably more of a problem with the French Revenue.