Expat taxation after 1 year

saidinmilamber

Hi a German friend of mine is worried that if she decides to stay in Ireland for a second year that she will have to pay back the tax that she was exempt from paying in the last year. Is this true, and if so is it just PAYE that she'd have to pay back to stay in Ireland?

Immy

There is nowhere near enough info there to answer what I think you are trying to ask.

When it comes to residence it takes 3 years to become ordinarily resident and hence have more taxable sources of income.

There is no difference between year 1 and 2.

saidinmilamber

Apologies, I'll try to give more info, just let me know what details in particular are useful.

She moved here last August, so for that tax year she was here less than the 183 days required to be considered a resident for tax purposes. We're both on the same wage, but she comes away with slightly more as I think it's just the PAYE that she is exempt from paying. She's been told by our boss that if she stays in Ireland beyond this August that she will have to pay back any tax that she's not had to pay up until now. For tax purposes though, she will be here the well more than the 280 days over 2 tax years at this point. Now I've never heard of anything like this having to pay back tax like this before and I've worked with tonnes of expats over the years. We've tried ringing the tax office a few times over the last few days for advice but I swear that phone never gets answered!

SRASE

Your colleague should get professional advice on this as it does not make sense.

A non resident person is still liable to Irish tax on employment income where the activities are performed in Ireland.

Depending on the circumstances, they may be exempt from PRSI in Ireland if on secondment from a German employer.