Who Pays?

An individual who is resident, ordinarily resident and domiciled in the State is liable to income tax in respect of his/her total income wherever arising. He/she is entitled, however, to claim certain Tax Credits and deductions.

An individual who is not resident in the State is normally liable to income tax in respect of income arising to him/her in the State. If he/she is non-resident but ordinarily resident, he/she is also liable to income tax on foreign income (other than foreign earnings) where that foreign income exceeds €3,810 in a year of assessment. This position, however, may be modified under double taxation agreements. Residents of countries with which Ireland has double taxation treaties may be entitled, in certain circumstances, to exemption from Irish income tax. In general, however, where income remains fully or partially taxable in the State and in any of the treaty countries, the tax charged in the source country is allowed as a credit against the tax charged in the other country on the same income.

A non-resident individual, who is an Irish citizen, or, having been resident in the State, is now resident abroad for health reasons, may be entitled to a measure of income tax relief. Similar relief is also available to residents of other member states of the EU and residents of most of the countries with which Ireland has double taxation agreements.

An individual who is domiciled abroad but who is resident in the State is taxed only on so much of his/her income which arises outside Ireland as is remitted to the State.

For the tax years 2012 to 2017 inclusive, relief from taxation may be claimed on a proportion of income earned by individuals who are resident in the State but who spend significant amounts of time working in a "relevant state". The relief applies for the years of assessment 2012 to 2017 and does not apply to Universal Social Charge or PRSI.

"Relevant state" means Brazil, Russia, India, China or South Africa, and

  • from 1 January 2013, includes Egypt, Algeria, Senegal, Tanzania, Kenya, Nigeria, Ghana or the Democratic Republic of the Congo, and
  • from 1 January 2015, includes Japan, Singapore, the Republic of Korea, Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Indonesia, Vietnam, Thailand, Chile, Oman, Kuwait, Mexico and Malaysia.

An individual is resident in Ireland in a tax year if he/she spends 183 days or more in Ireland in that year or spends an aggregate of 280 days in Ireland in that year and the previous tax year. (Presence in a tax year by an individual of not more than 30 days in the State is not reckoned for the purpose of applying the two-year test).

An individual who has been resident in Ireland for three consecutive tax years becomes ordinarily resident in Ireland from the beginning of the fourth tax year. An individual who has been ordinarily resident in Ireland ceases to be so at the end of the third consecutive year in which he/she is not resident.

A partnership as such is not chargeable to income tax. Each partner is chargeable individually to the tax referable to his/her share of the partnership income.

Income tax is normally chargeable on the entire income of an unincorporated body at the standard rate. Non-resident companies are liable to income tax in respect of any income arising in the State which is not charged to corporation tax.

A European Economic Interest Grouping is treated, for tax purposes, in the same way as a partnership. Each member of the EEIG is chargeable individually to his or her share of the income of the EEIG.

Further information on partnerships involving companies and on the EEIG is available in pdfTax and Duty manual 43.00.01 (PDF, 51 KB)

Further information on non-resident companies is available in pdfTax and Duty manual 02.02.04 (PDF, 76 KB)

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