Taxation of international executives
The Irish tax year is a calendar year. Income tax rates are 20 percent and 40 percent for the 2020 tax year. Individuals may be liable to PRSI, which is charged at 4 percent. Individuals may also be liable to a separate Universal Social Charge which is charged on a progressive basis of 0.5 percent to 11 percent of total income. Individuals are liable to capital gains tax on chargeable gains arising on the disposal of assets.
For 2020, most capital gains, in excess of 1,270 Euros (EUR), are taxed at 33 percent. An individual who is resident and domiciled in Ireland during a tax year is liable to tax on worldwide income and capital gains. An individual who is resident but not domiciled in Ireland during a tax year is liable to tax on any income or capital gains arising from sources within Ireland together with any foreign income or gains remitted into Ireland during the tax year (see Expatriate Concessions).
An individual who is not resident or ordinarily resident in Ireland during a tax year is liable to income tax on any income arising from Irish sources and on capital gains arising from the sale of Irish specified assets. Relief may be available to exclude or reduce income or capital gains from Irish taxation under a double tax agreement. Ireland has entered into tax treaties with a significant number of countries/jurisdictions.
The official currency of Ireland is the Euro (EUR).
Herein, the host country/jurisdiction refers to the country/jurisdiction where the expatriate is going on assignment. The home country/jurisdiction refers to the country/jurisdiction where the expatriate lives when they are not on assignment.
All information contained in this publication is summarized by KPMG Ireland, the Irish member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on the Irish tax, social security and immigration legislation in force for the period 1 January 2020 to 31 December 2020.
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