Are you considering a move abroad and need to cease your tax residency in Ireland? Navigating the steps to officially change your tax status can seem daunting, but with this comprehensive guide, you'll be well-prepared to handle the process smoothly and effectively.
Step 1: Determine Your Residency Status
Firstly, you need to establish whether you are currently considered a tax resident in Ireland. This is typically determined by the number of days you spend in the country during a tax year. If you spend 183 days or more in Ireland in a tax year, or 280 days over two consecutive years (with at least 30 days in each year), you are considered a tax resident. If your status is unclear, review Revenue's guidance on residency rules.
Step 2: Inform Revenue of Your Departure
Notify Revenue of your intention to cease being a tax resident. This can be done by completing Form P85, which is the 'Leaving Ireland' form. This form requires details about your departure date, your new country of residence, and your employment status. Submit this form as soon as you know your departure date to avoid any complications.
Step 3: Settle Outstanding Taxes
Ensure that all your outstanding taxes are settled before you leave. This includes any income tax, capital gains tax, or other liabilities you may have. You can request a statement of account from Revenue to confirm that all dues are cleared. Paying off all your taxes is crucial to avoid any legal issues in the future.
Step 4: Update Your Address and Contact Information
Update your address and contact information with Revenue and any other relevant institutions. This ensures that any future correspondence, such as tax returns or refunds, can reach you without delay. You can do this online through Revenue's myAccount service or by contacting them directly.
Step 5: Review Double Taxation Agreements
If you are moving to a country that has a Double Taxation Agreement (DTA) with Ireland, review the terms of the agreement. DTAs are designed to prevent individuals from being taxed twice on the same income. Understanding these agreements can help you manage your tax obligations in your new country of residence.
Step 6: File Your Final Tax Return
File your final tax return for the year you are leaving. This will include all your income up to the date of your departure. Ensure that you claim any tax credits and reliefs you are entitled to. This final return will help in calculating any refund due or further tax payable for the period you were a resident.
Legal References
- Taxes Consolidation Act 1997
- Income Tax Act 1967
- Double Taxation Relief (Taxes on Income) (General) (Amendment) Regulations 1997
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