Wednesday, 30 April 2014
Department of Finance
114. To ask the Minister for Finance under the tax agreements with the United Kingdom, the obligation an Irish citizen residing in Ireland has to pay the USC to the Irish Revenue Commissioners on income from a UK pension. [19635/14]
A UK pension that is similar to a social welfare pension in this State is not liable to USC. Other than such pensions, however, Irish resident individuals are liable to pay tax, including universal social charge, (USC) on income arising from Irish and foreign sources. In general, therefore, where an Irish resident citizen is in receipt of a pension (other than a social welfare type pension) from the UK, he/she is liable to pay income tax and USC on that income in Ireland. The individual is required to comply with the standard self-assessing requirements including the obligation to file a tax return and pay the tax due.
However, the UK and Ireland have a convention in place to eliminate double taxation on income arising in one State where the individual is resident in the other State. Irish tax, under the terms of the convention, includes income tax and USC. If the individual has paid UK tax on the income, a credit is allowed in computing the Irish income tax and USC liabilities to ensure that the income is not subject to double taxation.