Michael McGrath (Cork South Central, Fianna Fail)
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The Domicile Levy was introduced in the Finance Act 2010 to ensure that Irish-domiciled individuals who meet certain criteria make a contribution to the exchequer, irrespective of where they are resident for tax purposes. The purpose of the levy is to ensure that individuals with substantial income and assets located in the State make some sort of contribution to the exchequer.

The Remittance Basis of Taxation (RBT) concerns how non-domiciled Irish residents are taxed on their worldwide income.

The Commission on Taxation and Welfare (COTW) considered the remittance basis of taxation in its report entitled ‘Foundations for the Future’ which was published on 14 September 2022. As a matter of taxpayer equity, the Commission recommended that the remittance basis should only be available to resident, but non-domiciled taxpayers, for a maximum period of three years.

In due course my Department will examine all recommendations from the Commission on Taxation and Welfare’s report including the particular recommendations on the remittance basis of taxation.

As with all areas of tax policy, both the Remittance Basis of Taxation and the Domicile levy are keep under review on an ongoing basis.

It should also be noted that ongoing compliance activity is carried out in this area by the Revenue Commissioners.