Section 807 Deductions and reliefs in relation to income chargeable to income tax under section 806

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(1) Income tax chargeable by virtue of section 806 shall be charged under Case IV of Schedule D.

How am I taxed where I have power to enjoy income of a non-resident person?

(1) Income of a non-resident or non-domiciled person, which is enjoyed by you as an Irish resident following a transfer of assets abroad (section 806), is taxed under Schedule D Case IV.

(2) In computing the liability to income tax of an individual chargeable by virtue of section 806, the same deductions and reliefs shall be allowed as would have been allowed if the income deemed to be income of the individual by virtue of that section had actually been received by the individual.

Am I entitled to deductions or reliefs if I enjoy income of a non-resident person?

(2) You are entitled to the same deductions, personal allowances and reliefs to which you would be entitled had you actually received the income....

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(3) Where an individual has been charged to income tax on any income deemed to be income of the individual by virtue of section 806 and that income is subsequently received by the individual, it shall be deemed not to form part of the individual's income again for the purposes of the Income Tax Acts.

Can I be charged again if I later actually receive the income?

(3) Where you have been charged to tax on income of a non-resident or non-domiciled person, you are not charged a second time if you later receive the income....

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(4) In any case where an individual has for the purposes of section 806 power to enjoy income of a person abroad by reason of receiving any such benefit referred to in subsection (6)(c) of that section, the individual shall be chargeable to income tax by virtue of that section under Case IV of Schedule D for the year of assessment in which the benefit is received on the whole of the amount or value of that benefit, except in so far as it is shown that the benefit derives directly or indirectly from income on which the individual has already been charged to income tax for that or a previous year of assessment.

What other computation rules apply?

(4) This rule applies where, as an Irish resident, you receive, or you are entitled to receive, any benefit provided from the income (or successive associated operations on the income or the underlying transferred assets) of a non-resident or non-dom...

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(5) An individual who is domiciled out of the State shall not be chargeable to income tax in respect of any income deemed to be the individual's by virtue of section 806 if the individual would not, by reason of being so domiciled, have been chargeable to income tax in respect of it if it had in fact been the individual's income.

Amendments

Subs (5) inserted by Finance Act 1999 section 60(1)(b) as on and from 12 February 1998.

What happens if I am non-domiciled?

(5) Section 806 applies where you, as an individual resident or ordinarily resident in the State who has transferred assets abroad, have power to enjoy income of a non-resident person....

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