Taxes Consolidation Act 1997 section 71

Foreign securities and possessions

Section 71 deals with how foreign income (Case III foreign source income) is assessed for tax purposes in Ireland, including the arising basis, the remittance basis for non-domiciled individuals, and the treatment of foreign rental income.

• Foreign income is generally taxed on the full amount arising in the tax year, with deductions available for equivalent Irish allowances, foreign tax paid, and annual payments (excluding interest) made to non-residents.
• Individuals who are not domiciled in Ireland are taxed only on amounts actually remitted to the State (the remittance basis), with no deductions or abatements allowed on those remittances.
• Where a non-domiciled individual loans or transfers foreign income or property to a spouse or civil partner, and those funds are subsequently remitted to the State, the original individual is treated as having made the remittance and is taxed accordingly.
• Foreign rental income is treated in the same manner as Irish rental income for deduction purposes, and a right of appeal to the Appeal Commissioners exists for disputes regarding domicile status.