If you are working remotely in Ireland for an overseas employer or you have gone overseas to work remotely for an Irish employer and you need tax advice, we can assist.
Services Provided
Benefits of Working With Us
- Understanding Residency Rules: Assistance in determining tax residency status under Irish law and the implications of remote work on tax residency and compliance requirements.
- Double Tax Treaties: Review of applicable double tax treaties between Ireland and country where the work is carried out. Help with claiming relief under double taxation agreements to prevent being taxed twice on the same income.
- Income Tax Compliance: Preparation and filing of Irish tax returns, ensuring all income and deductions are correctly reported.
- Expense Deductions and Tax Reliefs: Identification and documentation of allowable deductions such as home office expenses, equipment, and travel costs. Assistance with claiming specific tax reliefs available to remote workers.
- Registration with Revenue: Assistance with registering with the Irish Revenue Commissioners. Advising also on employer obligations in this respect.
- Filing Tax Returns: Preparation and filing of Irish income tax returns.
- PAYE System: Guidance on the Pay-As-You-Earn (PAYE) system for salaried income.
- Social Security Contributions: Guidance on Irish social security contributions and any applicable agreements with their home country.
- Remittance Basis: Advice on the remittance basis of taxation for non-domiciled individuals.
- Foreign Income Reporting: Assistance with reporting foreign income and understanding the tax implications.
- Capital Gains Tax: Guidance on capital gains tax liabilities in Ireland and any reliefs available.
- International Considerations: Strategies for managing currency exchange issues related to salary or freelance income received in different currencies.
- Personalized Tax Planning: Ongoing personalized tax planning and advice.
- Social Security and Pensions: Guidance on Irish social security contributions and potential exemptions or credits for contributions made in other countries.
- Expertise in Expat Taxes: Specialised knowledge in handling tax issues for expats.
- Personalised Advice: Tailored tax strategies to optimise your financial situation.
- Comprehensive Support: From filing returns to planning future tax obligations.
Customer Story
Read our customer story on how we helped a remote worker clarify their tax position.
How It Works
Common Challenges Addressed
- Initial Consultation: Discuss your specific needs and circumstances.
- Assessment: Evaluate your tax status and obligations.
- Strategy Development: Create a tailored tax plan.
- Implementation: Assist with filing and compliance.
- Ongoing Support: Provide continuous advice and updates on tax laws.
- Navigating complex tax rules and residency requirements for remote workers.
- Ensuring employment contracts are compliant with Irish tax legislation.
- Understanding the tax implications of pension plans in different countries.
- Keeping up-to-date with changes in tax laws and employment regulations in multiple jurisdictions.
- Helping client to understand their options.
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Frequently Asked Questions
Am I considered a tax resident in Ireland?
Your tax residency status in Ireland is determined by the number of days you spend in the country:
183 Days Rule: You are considered tax resident if you spend 183 days or more in Ireland in a tax year.
280 Days Rule: You are also considered tax resident if you spend a combined total of 280 days or more in Ireland over two consecutive tax years, with at least 30 days in each year.
Ordinarily Resident: If you have been resident in Ireland for three consecutive tax years, you become ordinarily resident from the start of the fourth year and remain so until you have been non-resident for three consecutive tax years.
What taxes do I need to pay on my remote working income or freelance earnings?
As a remote worker or freelancer in Ireland, you are liable for the following taxes:
Income Tax: 20% on the first €42,000 of taxable income. 40% on income above €42,000.
Universal Social Charge (USC): USC is also applicable on rental income. The rates are 0.5%, 2%, 4.5%, and 8%, depending on the amount of income.
Pay Related Social Insurance (PRSI): Class S PRSI at 4% on all self-employment income over €5,000 annually.
Can I deduct home office expenses, equipment, and travel costs from my income?
Yes, you can deduct certain expenses from your taxable income as a remote worker or freelancer:
Home Office Expenses:
A portion of your home expenses, such as rent, mortgage interest, utilities, and broadband, proportional to the space used for work if you incur these costs personally.
A daily flat rate allowance of €3.20 per day can be paid tax-free by your employer if you are required to work from home.
Travel Costs:
Business-related travel expenses, but not commuting costs. Travel between home and your usual place of work is not tax deductible.
Keep detailed records and receipts for all deductible expenses and ensure they are solely for business use. Get the advice of a qualified tax adviser if in doubt.
What are the implications of working remotely from different countries?
Working remotely from different countries can have several implications:
Tax Residency: You may become tax resident in another country, leading to dual residency and potential double taxation issues.
Tax Treaties: Double taxation agreements (DTAs) between Ireland and other countries can help mitigate double taxation.
Social Security: Social security obligations may vary, and you may need to pay contributions in the country where you work.
Compliance: Ensure compliance with local tax laws, work permits, and employment regulations in the host country.
What taxes and regulations apply to remote work across borders?
Taxes and regulations for remote work across borders include:
Income Tax: You may be liable for income tax in both Ireland and the host country. DTAs can provide relief.
Social Security: Contributions may be required in the host country. The EU regulations or bilateral agreements may determine which country’s social security system applies.
Permanent Establishment: If you are an employee, your presence in another country could create a permanent establishment for your employer, leading to corporate tax obligations.
Work Permits and Visas: Ensure you have the necessary permissions to work remotely in the host country.
What taxes am I liable for as a remote worker or freelancer in Ireland?
As a remote worker or freelancer in Ireland, you are liable for:
Income Tax: As detailed above.
Universal Social Charge (USC): As detailed above.
Pay Related Social Insurance (PRSI): Class S PRSI at 4% on self-employment income over €5,000 annually.
Value Added Tax (VAT): Generally, Iif your turnover exceeds the VAT threshold (€40,000 for services or €80,000 for goods), you must register for and charge VAT.
How do I register with the Irish Revenue Commissioners?
To register with the Irish Revenue Commissioners:
ROS Registration: Register for the Revenue Online Service (ROS) on the Revenue website.
Tax Registration: Complete the TR1 (for sole traders) or TR2 (for partnerships or companies) form to register for income tax, PRSI, and VAT (if applicable).
Business Registration: If applicable, register your business name with the Companies Registration Office (CRO).
What is the process for filing my income tax returns?
The process for filing income tax returns is as follows:
Self-Assessment: As a freelancer, you must file an annual self-assessment tax return (Form 11) by October 31st of the following year (or mid-November if using ROS). Remote workers taxed under the Irish PAYE system can claim additional credits/reliefs using myaccount (the online system).
Preliminary Tax: Pay preliminary tax for the current tax year by the same deadline.
Calculate Tax Liability: Calculate your total income, deductible expenses, and tax liability.
USC and PRSI: Include USC and PRSI calculations in your return.
Submit Return: File your return and make any payments due via ROS.
