While there are many opportunities for contractors in all corners of the globe, it’s important to know the tax implications in each country. Here is a useful check-list to use when considering taking a contract abroad.
Residence (individual and company)
· Work out whether or not you will remain tax resident in Ireland: keep a detailed travel log recording all days in and out of Ireland (including travel tickets)
· Check availability of tax reliefs/credits including double tax relief
· Check possibility of tax refund in year of departure
· Check if you qualify for tax free travelling/subsistence/relocation payments.
· Check if you qualify to apply for an exclusion order from PAYE
OSK can advise on whether or not you will remain resident in Ireland; remain liable to taxes in Ireland and advise on what allowances and reliefs are available.
Potential exposure to taxation in overseas country
· Obtain local tax advice. OSK can generally recommend a reputable taxation advisor is most jurisdictions and we are happy to work with your overseas taxation advisor to work out the best tax structure for you.
· Apply for a Certificate of Coverage or E101/A1 Portable Document to remain in the Irish Social Insurance system. OSK can deal with this on your behalf.
Foreign Earnings Deduction
· This relief provides a deduction, from the income of an employment which is exercised abroad, subject to a maximum claim of €31,750 per tax year.
Split year residence
· Split year residence can in certain circumstances exempt from taxation in Ireland employment income earned following departure from Ireland.
Trans-border workers relief
Contact Imelda Prendergast at OSK for more informaton t: 01 4394206
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