Individuals and non-corporate persons

Income tax is charged on income of individuals, unincorporated bodies (s 1044), trustees (s 1046) and personal representatives (s 799).

Income of partnerships and European Economic Interest Groupings is charged on the individual partners (s 1008) or grouping members (s 1014).

Tax year

Income tax is charged on income arising in a tax year. The tax year coincides with the calendar year, for example, the tax year 2013 runs from 1 January 2013 to 31 December 2013.

Residence

Resident individuals

If you are resident and domiciled in the Republic of Ireland (ROI), you are liable to Irish income tax on your total income from all sources, i.e., your worldwide income.

You are regarded as ROI resident if your ROI presence amounts to:

(a) 183 days or more in a tax year, or

(b) an aggregate of 280 days in the current and preceding tax year.

Presence of not more than 30 days in a tax year is ignored for the purposes of the 280 day test (s 819). You are present for a day if you are present at any time during the day.

You are regarded as ordinarily resident in the ROI for a tax year if you were resident in each of the three immediately preceding tax years. You cease to be ordinarily resident when you have become non-resident for the three immediately preceding tax years (s 820).

Non-domiciled individuals

If you are resident but non-ROI-domiciled (for example, a foreign national living in Ireland), you are only taxed on foreign income to the extent that it is remitted to Ireland (s 71). This “remittance basis” extends to UK source income (since 1 January 2008).

Non-Irish-resident individuals

If you are non-Irish-resident, you are taxed on Irish source income, i.e., income arising in the ROI.

If you are non-Irish-resident but ordinarily resident in the ROI, you are liable to Irish tax on foreign investment income in excess of €3,810 in the tax year. You are not liable in respect of income from an employment or trade carried on abroad (s 821).

If you are a resident of a country that has a tax treaty with the ROI, you may be exempt, or due a credit, in relation to tax on Irish source income if that income is also taxed in the treaty country (see Double Taxation).

If you are an Irish citizen and Irish domiciled, but resident abroad, you may be caught for the domicile levy (€200,000 per annum) if:

(a) your world-wide income exceeds €1m,

(b) your Irish located property is worth more than €5m, and

(c) your Irish income tax liability was lower than €200,000.

More

Income Tax rates

Benefit in Kind

Income Tax exemptions

Income Tax schedules

Income Tax reliefs

> Capital Allowances

Handling losses

> Double taxation

Self Assessment

Revenue Powers

Withholding taxes

Penalties

Appeals