We work with many airline pilots who fly to and from Ireland. We assist them with determining their Irish tax obligations.
Services Provided
Benefits of Working With Us
- Understanding Residency Rules: Assistance in determining tax residency status under Irish law.
- Income Tax Compliance: Assistance with reporting worldwide income, including airline crew salary and allowances., with specific reference to Revenue guidance for pilots/air cabin crew.
- Expense Deductions and Tax Reliefs: Identification and documentation of allowable deductions such as travel expenses, uniforms, and training costs. Assistance with claiming specific tax reliefs available to airline crew members.
- Split Year Treatment: Advice on split year treatment if they move partway through the year.
- Double Tax Treaties: Review of applicable double tax treaties between Ireland and their home country.
- Registration with Revenue: Assistance with registering with the Irish Revenue Commissioners.
- 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.
- 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.
- Social Security Contributions: Assistance with understanding Irish social security contributions and any agreements between Ireland and their home country.
- Pension Planning: Advice on pension schemes and contributions in Ireland.
- Inheritance and Gift Tax: Guidance on inheritance tax (CAT) and gift tax implications in Ireland.
- Tax Updates: Regular updates on changes to Irish tax laws that might affect their situation.
- Personalized Tax Planning: Ongoing personalized tax planning and advice.
- 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 of how we helped an airline pilot navigate cross-border tax compliance.
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.
- Understanding and Complying with Tax Obligations
- Managing Finances Across Borders (Handling multiple currencies and managing exchange rate fluctuations. Ensuring timely payment of taxes and other financial obligations while travelling frequently.)
- Determining obligations if non-resident in Ireland but paid by an Irish employer.
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Frequently Asked Questions
Am I considered a tax resident in Ireland?
Whether you are considered a tax resident in Ireland depends on 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.
As airline crew, your time spent in Ireland and abroad can affect your residency status. Ensure you keep accurate records of your travel and time spent in Ireland. Remember that any part of a day spent in Ireland counts for tax residency purposes.
What rental expenses can I deduct from my taxable rental income?
You can deduct certain expenses from your taxable rental income, including:
Mortgage Interest: Interest on loans used to purchase or improve the rental property.
Repairs and Maintenance: Costs of necessary repairs and maintenance (not improvements).
Property Management Fees: Fees paid to property management companies.
Utilities and Services: Costs for utilities and services paid by the landlord.
Insurance: Premiums for landlord insurance policies.
Advertising: Costs of advertising for tenants.
Accountancy Fees: Fees paid for preparing rental accounts.
Legal Fees: Costs of legal services for drafting leases or dealing with tenant disputes.
What are the applicable tax rates for salary and allowances?
The applicable tax rates for salary and allowances in Ireland are:
Income Tax Rates:
20% on the first €42,000 of taxable income.
40% on income above €42,000.
Universal Social Charge (USC): The rates are 0.5%, 2%, 4.5%, and 8%, depending on the income.
Pay Related Social Insurance (PRSI):
Class A PRSI at 4% on all income over €5,000 annually.
Allowances may be treated differently, and you should check with your employer or tax advisor to understand the specifics of how they are taxed.
What tax exemptions apply for airline crew in Ireland?
Tax exemptions for airline crew in Ireland include:
Foreign Earnings Deduction (FED): If you spend at least 30 consecutive days working abroad, you may qualify for the FED, which allows for a deduction from your taxable income.
Trans-border Workers Relief: If you are a resident of Ireland but work abroad, you may be eligible for this relief to avoid double taxation.
Consult a tax advisor to see if you qualify for these or other exemptions based on your specific circumstances.
How does the Non-Resident Landlord Scheme work?
Under the Non-Resident Landlord Scheme:
Deduction at Source: If your tenant or an agent collects the rent, they are required to deduct standard rate income tax (currently 20%) from the rent paid to you.
Filing Returns: You are still required to file an annual tax return to report the full rental income and claim a credit for the tax deducted at source.
Collection Agent: If you appoint a collection agent, the agent can collect the rent without deducting tax, but you must file annual returns and pay any tax due.
How do I claim double taxation relief?
To claim double taxation relief:
Double Taxation Agreements (DTAs): Check if Ireland has a DTA with the country where you also pay tax. These agreements often allow for a tax credit or exemption to avoid double taxation on the same income.
Tax Return: When filing your Irish tax return, declare the foreign tax paid and claim a credit for that amount. You may need to provide proof of tax paid abroad.
Revenue Form: Use Form 12 or Form 11 to claim the relief and attach any required documentation.
What expenses can I deduct from my income? Can I deduct travel expenses, uniforms, and training costs?
As airline crew, you can deduct certain expenses from your income, including:
Travel Expenses: While commuting expenses between home and your base are typically not deductible, expenses incurred for work-related travel may be deductible.
Uniforms: Flat rate allowances may be due depending on your role. See the list here
Training Costs: Expenses for training courses that are necessary for your job and not reimbursed by your employer.
Professional Fees: Membership fees for professional bodies related to your employment may be deductible – consult a tax professional
Ensure you keep detailed records and receipts for all deductible expenses.
Do I need to report my non-employment income?
Yes, you need to report all non-employment income in your annual tax return.
This includes:
Investment Income: For example, dividends, interest, and rental income
Foreign Income: Any income earned abroad, including from investments or property.
Other Income: Any other income sources, such as freelancing or side businesses.
Use Form 12 or Form 11 to report all sources of income.
How do social security contributions work for airline crew members/pilots?
Social security contributions for airline crew members and pilots:
Pay Related Social Insurance (PRSI):
Class A PRSI is applicable at 4% on all income over €5,000 annually.
These contributions entitle you to various social welfare benefits, including state pensions and unemployment benefits.
International Agreements: If you work in multiple countries, international agreements between Ireland and other countries can help avoid double contributions and ensure you receive benefits.
Employer Contributions: Your employer must also make PRSI contributions on your behalf.
EU Regulations: If you work within the EU, EEA, or Switzerland, EU social security regulations can determine which country’s social security system applies to you.
