The Commission proposes that the current 183/280 days test for determining an individual's residence status for Irish tax purposes should be supplemented by additional criteria. It is also suggested that the remittance basis of taxation for income tax and capital gains tax should be discontinued.

Residence rules

The Commission considers that the current 183/280 days test for determining an individual's Irish residence position is unsatisfactory and in keeping with other tax jurisdictions and the OECD model tax treaty, suggests that additional factors such as a permanent home test, together with a test based on an individual's centre of vital interests be used to supplement the 183/280 days test.

Remittance basis of taxation

The current remittance basis of taxation provides favourable tax treatment for non domicile individuals or Irish citizens not ordinarily resident in Ireland. The Commission considers that it is inappropriate to distinguish between taxpayers on grounds of domicile and calls for the withdrawal of the remittance basis of assessment with a lead time of three to five years before the change takes effect.