Michael Noonan (Limerick City, Fine Gael)
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The taxation of individuals in the State is broadly in line with that prevailing in most other OECD jurisdictions, that is to say —

(a) Individuals who are resident in the State for tax purposes (based on the number of days of presence in the State) are taxable here on their worldwide income; and

(b) Individuals who are not resident here for tax purposes pay tax here only on income arising in the State and on income derived from working here.

An Irish citizen or Irish domiciled individual claiming to be non-resident for tax purposes and who is living abroad primarily for tax reasons may be subject to the Domicile Levy which was introduced in Finance Act 2010 and is charged on an individual:

· who in any year is Irish domiciled and an Irish citizen,

· whose worldwide income in the year exceeds €1m,

· whose Irish located property in the year is greater than €5m, and

· whose liability to Irish income tax for the year is less than €200,000.

The amount of the levy is €200,000. Any Irish income tax paid is available as a credit against an individual's liability to the levy.

In Budget 2012 I announced my intention to abolish the "citizenship" condition for payment of the Domicile Levy to ensure that it cannot be avoided by renouncing citizenship. Provision for this will be made in the forthcoming Finance Bill. I also stated at that time that I intend to keep this contentious issue under review.