Article re-produced with the kind permission of Taxworld. (www.taxworld.ie)
In relation to income tax, the concept of residence can be important. If you are not resident, you may not be liable to tax!!
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 you have spent:
(a) 183 days or more in ROI, in a tax year, or
(b) an aggregate of 280 days in ROI, 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).
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).
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 liable to 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 is lower than €200,000.