Application of sections 17 and 18(1) and Chapter 1 of Part 3

This section creates an exception to the general rule that a non-resident is taxable only on Irish source income. It provides that a non-resident is subject to tax on foreign investment income of €3,810 or more in any tax year for which he/she is ordinarily resident in the State.

The section is constructed to treat individuals who are not resident but are ordinarily resident in the State as resident in the State for the purposes of charging tax on any profits, gains or investment income. This effectively brings all foreign income, profits or gains within the charge to tax. However, the section goes on to exclude income from a trade or profession which is entirely carried on outside the State. Also excluded is income from an office or employment the duties of which are, apart from incidental duties, exercised outside the State. Finally, the section does not apply to other income which does not exceed €3,810 in a tax year. Thus, a non-resident but ordinarily resident individual is subject to tax on foreign investment income of €3,810 or more received in a tax year.

Relevant Date: Finance Act 2021