Tax return Ireland - confused over residency part

[NAP]

Hi.

Just wondering if any other Irish expats have done tax returns from here before? I have been here in NZ since oct 2010 so I understand for 2010 I file as a resident in Ireland as was there for over 183 days. Where I get confused is for future years - do I become a non resident for tax return 2011 or not? I was reading up about it online and it doesn't seem as straight forward as one would think. Something about being resident for 3 years and becoming ordinarily resident before becoming non resident. Any clues?

Will need to file in the coming years has have rental and other small income over there.

Thanks in advance

[123laura]

Hi.

Just wondering if any other Irish expats have done tax returns from here before? I have been here in NZ since oct 2010 so I understand for 2010 I file as a resident in Ireland as was there for over 183 days. Where I get confused is for future years - do I become a non resident for tax return 2011 or not? I was reading up about it online and it doesn't seem as straight forward as one would think. Something about being resident for 3 years and becoming ordinarily resident before becoming non resident. Any clues?

Will need to file in the coming years has have rental and other small income over there.

Thanks in advance

I have been trying to get similar information from the Revenue Commissioners. The words blood and stone come to mind. Talking to them makes me want to ask what they understand by the words public servant. It might be easier to see if you can get an accountant to do this for you.

[NAP]

I have been trying to get similar information from the Revenue Commissioners. The words blood and stone come to mind.

At least I am not the only one then!! I rang last night and the girl didnt have a clue! Yes, I used to always use an Accountant as had my business back there - but when we closed that down at end of 2009, I thought I'd avoid the Accountancy Fee and do it myself (thinking it wouldn't be too complicated!!!) UHM!!

At least I know for 2010 I am a resident so might give it a bash this year - but then for the following years will have delve further.. But if I come across more obstacles I think it will be back to the Accountant!

Thanks anyway!

Would just love to know the correct answer as to our status!

[lin]

Can't answer the query, Nap, as we are in the same boat with a rental back home. Will be using an accountant this year so hopefully will get some clarification from him on our tax status. Citizen's Information website has a page explaining tax residence if that's any help (see below).

Probably stating the obvious, but for anyone from Ireland emigrating here, the following may be of use:

Citizen's Information: Tax residence & domicile in Ireland & Leaving Ireland & Social Security entitlements

Dept of Social Protection - Irish/New Zealand Social Security Agreement

[123laura]

At least I am not the only one then!! I rang last night and the girl didnt have a clue! Yes, I used to always use an Accountant as had my business back there - but when we closed that down at end of 2009, I thought I'd avoid the Accountancy Fee and do it myself (thinking it wouldn't be too complicated!!!) UHM!!

At least I know for 2010 I am a resident so might give it a bash this year - but then for the following years will have delve further.. But if I come across more obstacles I think it will be back to the Accountant!

Thanks anyway!

Would just love to know the correct answer as to our status!

I rang them in relation to capital gains tax. We are trying to sell the house and the market is stagnant and we've had no viewings or interest at all. So I thought we will probably have to rent it, but once it's not your primary residence you are liable for capital gains tax at 25%. I think that's crazy, it's not my fault the banks won't give anyone a mortgage. So a little lateral thinking, and apparently if you rent out a room (at whatever rent) it's still your primary residence. I though I'd ask how long you have to live in the house again after renting to make it your primary residence, thinking worst case scenario I could come back with the kids for a few weeks or months when the market picks up. No-one in the Revenue Commissioners knows how long I would have to be back in order for it to be my primary residence, nor do they have any idea at all where you could access that information.

[lin]

I rang them in relation to capital gains tax. We are trying to sell the house and the market is stagnant and we've had no viewings or interest at all. So I thought we will probably have to rent it, but once it's not your primary residence you are liable for capital gains tax at 25%.

Have a look at the Revenue leafleft on CGT (pg 15 if you want to skip through the doc). I don't understand it all but its a start!

And check out Askaboutmoney.com for some previous examples (like here: http://www.askaboutmoney.com/showthr...ital+gains+tax)

[123laura]

You are a genius! Could you just pop over to the Dept. of Finance, grab them all by the scruff of the neck and sort the country's finances out. Then I could sell my house,move to NZ ...and they all lived happily ever after.

Have a look at the Revenue leafleft on CGT (pg 15 if you want to skip through the doc). I don't understand it all but its a start!

And check out Askaboutmoney.com for some previous examples (like here: http://www.askaboutmoney.com/showthr...ital+gains+tax)

[lin]

You are a genius! Could you just pop over to the Dept. of Finance, grab them all by the scruff of the neck and sort the country's finances out. Then I could sell my house,move to NZ ...and they all lived happily ever after.

hee,hee, can't take any credit, I found it via Askaboutmoney.

[NAP]

Hi guys,

Thanks for all the responses.. Lin - yes I got a little confused by the Citizens Information site - thats what sent me into a whirlwind of panic as to what category I was!!
Will check out your other links though.

In relation to an Accountant - when I had my small business he used to charge me €786 - for a Self Assesed Tax Return.. My sister though who just had tax returns and no business was being quoted a €1000 - EEK! Do you know what you guys are being charged for doing your CGT's/Tax Returns? Just wanted to guage how much it will all be?

I was reading loads on the rental thing Lin and it seems you can claim back lots on it - such as management fees, repairs, insurance etc (well parts of this anyway).
I know non resident landlords are charged 20% tax - not sure about residents as what I am classified as for the moment (but again not sure how long that lasts!) As it is my only home I am not if charged anything?!

Tax - its a world of its own!

[lin]

Hi guys,

Thanks for all the responses.. Lin - yes I got a little confused by the Citizens Information site - thats what sent me into a whirlwind of panic as to what category I was!!
Will check out your other links though.

In relation to an Accountant - when I had my small business he used to charge me €786 - for a Self Assesed Tax Return.. My sister though who just had tax returns and no business was being quoted a €1000 - EEK! Do you know what you guys are being charged for doing your CGT's/Tax Returns? Just wanted to guage how much it will all be?

I was reading loads on the rental thing Lin and it seems you can claim back lots on it - such as management fees, repairs, insurance etc (well parts of this anyway).
I know non resident landlords are charged 20% tax - not sure about residents as what I am classified as for the moment (but again not sure how long that lasts!) As it is my only home I am not if charged anything?!

Tax - its a world of its own!

Yikes that's expensive, I think the quote I got was under €400, though I think it is a discounted rate and I can't recall what that covers.

I just assumed the tax-rate 20% is the same whether I am resident or not.


Also found the following that the accountant explained in an earlier mail - not sure why I didn't think of this when you first asked the question:

"Rent Paid to Non Residents
Where rent is paid direct to a non-resident, tax at the standard rate (20%) must be deducted by the payer. While in strictness the tenant should make a Return to the Revenue immediately after the tax is deducted and pay the tax, in practice an annual return made with the tenants tax return for the tax year together with payment of the tax deducted, is sufficient. The tenant should give the landlord a form R185 to show that the tax has been accounted for to the Revenue. (I’m not sure if this is done in practice because many tenants may not be aware the landlord is non-resident)

Capital Gains Tax
Gains on the sale of your Principal Private Residence (PPR) are usually exempt from CGT. However where the property has not always be used as PPR then CGT may be due on any gain arising on the sale. There is a specific formula for calculating the “Exempt” and Non Exempt” portions of the gains but a rough guide is the period of occupation as PPR versus the total period of ownership.

Taxable Rental Income
You will be taxed on your rental “Profit” earned during the tax year. This is the rent received less the following expenses: Mortgage Interest, Letting Fees, Insurance, Repairs, Management Fees, Professional Fees etc. We can calculate this for you and submit it wit details of your other income, to the Revenue Commissioners on your behalf. You may also be entitled to a refund of the PAYE you have paid during 2009."

On the non-resident tax, we are using an agent to manage the property and they are deducting the tax from the rent and will pay it directly to Revenue when I let them know the required amount. This was the advice the agent got from Revenue, but it took a while to get clarification on how this will work.