Double Taxation Treaty Ireland/Germany: Remote Working

[rascalinfaith]

Hello,

I am a German citizen (based in Germany) who has been offered a research position at an Irish university. My work can be done totally remotely so I would like to postpone the move for the next six or seven months, if possible. My boss has no problem with that but I don't fully understand the tax implications.

According to article 18 in the double taxation agreement between Germany and Ireland, it seems as though government service work is only taxable in the country of employment. If this is true, I can work from Germany and pay taxes in Ireland as long as I eventually declare this in Germany.

The language in this agreement, however, is very convoluted and difficult to follow. Does anyone know if this the case?

Thank You!

Source: https://www.bundesfinanzministerium...men-DBA-Gesetz.pdf?__blob=publicationFile&v=3

 

[barwi]

@rascalinfaith Maybe talk to a EURES advisor. They’re an EU institution that helps with cross border employment issues that I wish I knew of sooner. https://ec.europa.eu/eures/eures-co...pageCode=search_advisers#/adviser/search/list

 

[njehia]

@rascalinfaith That’s quite a technical document with provisions relating to a pretty niche area. I can’t comment on it specifically however at a very high level, if you’re going to be in Germany for the next six or seven months you will probably be tax resident in Germany for the year and as such will be liable to German tax on your worldwide earnings (including earnings from your Irish employer).

If working from Germany was going to be a long term proposition your employer would need to run a specific German payroll for you via a German payroll provider (which will involve registering as an employer in Germany), but if it’s a short term thing they could probably get away with paying you through their Irish payroll. This would involve you being taxed in Ireland, but you can claim this against any German tax due when you file your German taxes.

With regard to your linked document it may be worth contacting the Goethe Institut in Dublin to ask if it is relevant to your position.