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 Details | Value |
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 values | Value |
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.