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Determining US Business ‘S Corp’ Tax Obligations

An individual, along with his Irish wife and young family, decided to relocate from the US to Ireland. As the owner of a US S Corporation, he faced uncertainties regarding the taxation of his business entity in Ireland. 

Additionally, he required clarity on potential payroll obligations in Ireland, considering his previous employment under a W2 arrangement in the US.

A man sitting at a desk behind a computer being given a piece of paper with a difficult task to complete.
A man sitting at a desk behind a computer being given a piece of paper with a difficult task to complete.

Problem

  • With US pension accounts also in the picture, understanding the Irish tax implications became crucial. Our client’s goal was to work remotely for his US company, providing ad-hoc support to the US-based management team — all while avoiding any unforeseen tax complications.
  • The client felt stressed due to the move and was overwhelmed by the obligations arising from his US citizenship. He needed to navigate how the Irish revenue would treat his US S Corp entity, ensuring compliance and accurate tax payments in both the US and Ireland without overpaying.

Process

  • We initiated consultations with the client and his US-based advisors to establish a coordinated cross-border approach. We conducted a detailed analysis of the US entity to determine how to treat income and payments under Irish tax legislation.
  • Our guidance focused on optimising the client’s Irish tax liability using the remittance basis of tax.
A woman writing out a detailed list of procedures on a piece of paper.
A contemplative, worry-free man sitting on a mountain side looking at mountains with a blue sky back drop.
A contemplative, worry-free man sitting on a mountain side looking at mountains with a blue sky back drop.

Outcome

  • With our support, the client successfully set up payroll in Ireland and gained a clear understanding of the remittance basis of tax. We provided ongoing income tax return support, ensuring a smooth annual tax return process that aligned with his US advisor to maximise tax credits.
  • Our specialised expertise in this area enabled the client to maintain compliance, minimise tax liabilities, and navigate the complexities of cross-border taxation with confidence.

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