Expatriate tax ebook - Ireland

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Employers of non EU nationals are usually required to apply for a work permit prior to the employee taking up employment in Ireland. It is, therefore, important that the expatriate's employment contract and benefit package is structured tax efficiently before the contract is submitted to the Department of Jobs, Enterprise and Innovation in Ireland.

Employment visas
Under the work permit procedure the employer will be required to advertise the position in Ireland and the EU before the department will consider issuing a work permit to a non EU national where a suitable candidate cannot be found. A residence visa must also be acquired to allow the expatriate to live in Ireland.

Where the expatriate's spouse and family relocates to Ireland, relevant visas and a separate work permit (where the spouse will also work) will be required.

Where the expatriate is an EU national the above procedure is usually not required.

Tax returns and compliance
Most Irish national employees working in Ireland pay their tax through payroll withholding and are not required to file a tax return. However, foreign nationals on assignment to Ireland may have a more complicated tax position and may be required to file an Irish tax return even if their taxes are being paid by their employer.

Personal tax returns should be filed by 31 October following the end of the tax year concerned.

Tax year
The Irish tax year runs from 1 January to 31 December.

Income tax rates - resident individuals 2010

The Universal Social Charge (USC)

The USC came into effect on 1 January 2011, is a tax payable on gross income, including notional pay. All individuals are liable to pay the USC if their gross income exceeds €4,004 per annum. The USC will be collected through payroll in most cases. The standard rates of USC are:

Where the individual is not tax resident in Ireland, only the single person's standard rate band is available (aggregation relief may apply).

A married individual will be treated as a single person for Irish tax purposes where their spouse remains in their home country and continues to earn their own income.

Personal tax deductions, based on personal tax circumstances, apply to Irish tax residents.

Sample income tax calculation for year ending 31 December 2010

• introduction 
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities