Revenue Note for Guidance

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Revenue Note for Guidance

Part 45

Charging and Assessing of Non-residents

CHAPTER 1

Income tax and corporation tax

Overview

This Chapter provides for the charging and assessing to tax of non-residents (sections 1034 to 1041). It also makes provision in relation to the application of personal allowances, etc to non-residents (section 1032) and entitlement to tax credits in respect of distributions (section 1033).

1032 Restrictions on certain reliefs

Summary

With some exceptions personal allowances, etc are not available to non-residents. In the case of these exceptions the ratio of the individual’s Irish sourced income to total income determines the amount of allowances available against Irish tax. In the case of an EU resident if this ratio exceeds 75%, the full amount of the allowances are available.

Details

(1) In general, non-resident individuals are not entitled to any of the normal personal allowances, deductions and reliefs (as set out in the table to section 458).

(2) In certain circumstances a portion of the allowances, etc is available. The portion is determined by the ratio of Irish sourced income to total income of the individual. The circumstances are where the individual is —

  • an Irish citizen,
  • non-resident for health reasons (this includes the ill health of family members),
  • an EU citizen or exempt under section 10 of the Aliens Act, 1935, or
  • a British citizen before 5 April 1935, etc.

(3) In the case of an EU resident all personal allowances, reliefs, etc are available if the Irish sourced income is 75% or more of the total income of the individual.

(4) Member State of the European Communities is deemed to include the United Kingdom.

(5) Subsection 4 applies, with effect from the date that the UK leaves the EU.

Relevant Date: Finance Act 2019