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Transborder Workers' Relief

  1. Overview
  2. Who qualifies for Transborder Workers' Relief?
  3. How do you calculate how much relief is due?
  4. How do you apply for Transborder Workers' Relief?

How do you calculate how much relief is due?

The 'specified amount' is calculated as follows:

Total Irish tax due x (income other than foreign employment income/total income).

You will not receive any credit for foreign tax paid if you qualify for transborder relief.

  • Example 1

    In 2019 Sam was resident in Ireland and employed in Northern Ireland (NI). He earned £20,000, along with Irish rental income of €5,000.

    Sam's income details
    Income DetailsValue
    NI employment income (£20,000) (£1 = €1.168) €23,360.00
    Irish rental income €5,000.00
    Total income €28,360.00
    Taxable @20% €5,672.00
    Personal Credit valuesValue
    Personal €1,650.00  
    PAYE €1,650.00 €3,300.00
    Irish tax due   €2,372.00
    Less credit for UK tax paid (£1,530) (£1 = €1.168) €1,787.04
    Tax now due   €584.96

    How Transborder Workers' Relief operates

    Specified amount: €2,372.00 x (€5,000.00 / €28,360.00) = €418.19

    The total tax due is €418.19

    Benefit of Transborder Workers' Relief

    This gives a saving of €1,953.81 (€2,372.00 - €418.19).

    If the taxpayer had no rental income, the specified amount would be zero.

  • Example 2

    Tom and Sally are resident in Ireland in 2019. Tom is employed in Ireland and earns €40,000. Sally is employed in Northern Ireland (NI) and earns £20,000.

    Before Transborder Workers’ Relief
    IncomeAmount
    Tom’s income €40,000.00
    Sally’s income (£20,000) (£1 = €1.168) €23,360.00
    Total income €63,360.00
    Taxable
    PercentageAmount
    63,360.00 @ 20% €12,672.00
    Total €12,672.00
    Tax credits
    DetailsAmount
    Married Person or Civil Partnership Credit €3,300
    PAYE credit (€1,650 x 2) €3,300
    Total €6,600
    Irish tax due €6,072.00
    Less credit for UK tax paid (£1,530) (£1 = €1.168) €1,787.04
    Tax now due €4,284.96

    How Transborder Workers’ Relief operates

    Specified amount: €6,072.00 x (€40,000.00 / €63,360.00) = €3,833.33

    The total tax due is €3,833.33

    Benefit of Transborder Workers’ Relief

    This gives a saving of €2,238.67 (€6,072.00 - €3,833.33).

Next: How do you apply for Transborder Workers' Relief?

Published: 04 December 2020 Print this page

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