1. The scope of income tax The scope of income tax
Defines what income is subject to income tax in Ireland
Concepts of residence, ordinary residence, and domicile
Implications of residence, ordinary residence and domicile

2. The scope of income tax Residence
Current residence rules in place since 6 April 1994
Individual is resident in the State if he/she is present in the State at any one time or several times in a year of assessment for a period which amounts to 183 days or more

3. The scope of income tax Residence
Individual is resident in the State if he/she is present in the State at any one time or several times in a year of assessment and the preceding year for a period which amounts to 280 days or more
He/she will not be regarded as resident for any tax year in which he/she spends a period amounting to 30 days or less, and no account shall be taken of such a period for the 280 day test

4. The scope of income tax Residence
An individual is considered resident in Ireland on any day in which he/she spends part of the day in Ireland
An individual may elect to be resident for a year of assessment in which he/she is present in the State with the intention and in such circumstances that he/she will be resident in the following tax year

5. The scope of income tax Residence - Example
Example 1- Eric was seconded to Ireland on 15 July on a 12 month contract. During that period he did not leave Ireland at any time. He left Ireland for good on 1 August 2014.
Example 2 – Same as above except he left Ireland on 1 May 2014 due to ill-health

6. The scope of income tax Ordinary Residence
An individual is ordinarily resident in Ireland for a tax year if he/she has been resident for each of the three tax years preceding that year
An individual will not cease to be ordinarily resident until the individual has been non-resident for three consecutive tax years

7. The scope of income tax Ordinary Residence - Example
Miguel arrived in Ireland from Spain on 1 March 2013, where he took employment and stayed in the country until 1 January 2020, when he returned to Spain, where he stayed permanently. For what years will he be ordinary resident in Ireland?

8. The scope of income tax Domicile Not defined in the Income Tax Acts
Complex legal concept, with a large volume of case law
Generally, a person is domiciled in the country of which he/she is a national and in which he/she spends his/her life
However, it is possible for a person to be domiciled in a country which has not been his/her home

9. The scope of income tax Three principles of domicile
No person can be without a domicile
No person can have more than one domicile at the same time
An existing domicile is presumed to continue until it has been proved that a new domicile has been acquired

10. The scope of income tax Domicile of origin
Individual is born with a domicile of origin
Usually the domicile of his/her father
However, where the parents are not married or the father dies before the birth the child’s domicile will be that of the mother
Before reaching majority, if the relevant parents domicile changes so does the childs

11. The scope of income tax Domicile of choice
On reaching majority, he/she can reject his/her domicile of origin and acquire a domicile of choice
Must prove conclusively that all links with the country of domicile of origin have been severed
By positive acquisition not abandonment

12. The scope of income tax Domicile of choice
Acquired by residence and intention
A domicile of choice can also be rejected

13. The scope of income tax Domicile of choice
Acquired by residence and intention
A domicile of choice can also be rejected

14. Implications of Residence, Ordinary Residence and Domicile
Resident, ordinarily resident and Irish domiciled
Taxable on all Irish and worldwide income

15. Implications of Residence, Ordinary Residence and Domicile
Resident, not ordinarily resident, and Irish domiciled
Taxable on all Irish and worldwide income

16. Implications of Residence, Ordinary Residence and Domicile
Not resident, ordinarily resident and Irish domiciled
Taxable on all Irish and foreign sourced income in full.
However, income from the following sources is exempt:
Income from a trade, profession, office or employment all the duties of which are exercised outside Ireland,
And other foreign income, provided that it does not exceed €3,810

17. Implications of Residence, Ordinary Residence and Domicile
Not resident, but ordinarily resident in Ireland and not Irish domiciled
Taxable on Irish source income in full and other foreign income only to the extent that it is remitted to Ireland
Income from the following sources is exempt:
Income from a trade, profession, office or employment all the duties of which are exercised outside Ireland,
And other foreign income, provided that it does not exceed €3,810

18. Implications of Residence, Ordinary Residence and Domicile
Resident and ordinarily resident in Ireland but not Irish domiciled
Taxable on Irish source income in full and other foreign income only to the extent that it is remitted to Ireland

19. Implications of Residence, Ordinary Residence and Domicile
Resident, not ordinarily resident in Ireland and not Irish domiciled
Taxable on Irish source income in full and other foreign income only to the extent that it is remitted to Ireland

20. Implications of Residence, Ordinary Residence and Domicile
Not resident, not ordinarily resident, irrespective of domicile
Taxable on Irish source income in full and taxable on income from a trade, profession or employment exercised in Ireland

21. Implications of Residence, Ordinary Residence and Domicile
Example
Alex has the following sources of income in 2014:
Irish salary €25,000
UK Dividends €10,000
USA Rental income €15,000
Alex is resident in Ireland but no domiciled in Ireland.
He remitted €8,000 of his UK dividends into Ireland but none of his US income.

22. Implications of Residence, Ordinary Residence and Domicile
Example
An Irish engineer moves to Saudi Arabia. While abroad and still ordinarily resident in Ireland he receives foreign rental income of €3,000 per annum and other foreign investment income of €600 per annum.

23. Implications of Residence, Ordinary Residence and Domicile
Example
An Irish engineer moves to Saudi Arabia. While abroad and still ordinarily resident in Ireland he receives foreign rental income of €3,000 per annum and other foreign investment income of €1,000 per annum.