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Irish
Expatriate Tax Privileges
Irish
expatriates can enjoy virtually tax free investment
returns while they are resident outside the
State.
On return to
the State the proceeds of a retirement benefits
policy can be taken free of Irish taxes (if
encashed immediately).
Alternatively,
they can continue their retirement benefits policy
on return to the State. Tax is only levied on the
investment income and gains which arose while the
former expatriate was resident in the State. The
rate of tax is the standard rate of income tax
prevailing at the time. Thus the tax is deferred
until the retirement benefits policy is finally
cashed in and there is no liability to tax at
higher rates
After
returning to the State, if encashment takes place
between the ages of 60 and 70, tax is levied on
only 75% of the investment income and gains which
arose while the former expatriate was resident in
the State. The rate of tax is the standard rate of
income tax prevailing at the time. In this case not
only is the tax deferred until the retirement
benefits policy is finally cashed in, but only 75%
of the investment income and gains which arose
while the former expatriate was resident in the
State is taxable. Similarly, there is no liability
to tax at higher rates
No Irish
taxes are deducted when the proceeds are taken
while the Irish expatriate is not residing in the
State but there may be a tax liability in their
country of residence.
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