Revenue Note for Guidance

Part 34

Provisions Relating to the Residence of Individuals

Overview

Part 34 sets out the rules of residence for individuals and a number of related issues. For taxation purposes, the general rule in this country and many others is that residents of a State are subject to taxation on income arising in the State as well as foreign source income, whereas non-residents are chargeable only on income arising in the State. Rules of residence (and ordinary residence) are, therefore, important in determining the extent to which Irish taxation can apply to the income and gains of individuals.

The rules contained in this Part apply for the purposes of the Tax Acts (that is, the Income Tax Acts and the Corporation Tax Acts), the Capital Gains Tax Acts and the Capital Acquisitions Tax Acts.

This Part also contains specific rules for determining residence and ordinary residence (sections 819 and 820). It provides for a charge to tax on foreign investment income on the basis of ordinary residence (section 821) and deems an individual to be resident for part of a year only in certain circumstances (section 822). It also contains relief for resident taxpayers working abroad (sections 823 and 823A) as well as an appeals provision (section 824). The Part also provides for a modification of the general rules relating to residence and ordinary residence in the case of donors of gifts to the State (section 825) where those gifts are made before 4 February 2010. The Part also provides for a reduction in income tax charged in certain circumstances, i.e. cross-border workers (section 825A) and for repayment of tax where earnings are not remitted (section 825B).