Contract outside France -taxed where?

[milkeybar kid]

Just had a fascinating conversation , - Couple arrived in France 4 years ago to house as permanent resident (no other property) , after a few months women decided to take up a 4 year contract outside of France - Ireland, she visits husband in France whilst she rents appartment in Ireland, after 12 months returned to France, she paid Tax Bill in the country she worked in . Because her main residence was with husband and the only house they own was in France, would she have come under the umbrella of being taxed in France ,because of the recipricol agreement could she have claimed the tax back and perhaps have been better off. Her argument was because she rented an apartment she became a temporary resident in the Ireland. Does she have a choice? Does both southern and Northern Ireland have a recipricol agreement as regards Taxes? Edited grammar - spelling I gave up on!

[Albert the InfoGipsy]

The normal rule is that you pay tax in the country where you do the work. In this case it is pretty certain  that taxes were due in Ireland. She would still have to declare her world-wide earnings in France, because they can affect which tax band your top slice of income falls into. However, assuming that there is a dual taxation treaty (dunno) between France & Ireland then any tax paid in Ireland would be taken into account when calculating French liability.

I know nothing about Irish tax law, but it is probable that there are various ways to minimise tax liability if you know what you are doing, equivalent to operating as a Ltd Co in the UK if your turnover is high enough.

National Insurance, or equivalent, is more complicated.