Payroll Tax Summaries for Selected Countries Relief from double taxes Indonesia has an income tax treaty with the U.S. (see Appendix A, page A-33). IRELAND IRELAND Basis for tax Individuals who are domiciled and resident in Ireland in a tax year are subject to tax on their worldwide income. However, expatriates who are residents and work in Ireland but are not domiciled there are not taxed on income from foreign employment paid outside Ireland. Individuals who are resident in a tax year but not domiciled in Ireland are subject to tax on Ireland-source income. Individuals who retain domicile in Ireland but are no longer resident are taxed on worldwide income, excluding income from employment performed abroad that does not exceed a certain threshold. Nonresidents are taxed on Irish-source income but may be relieved from liability under a tax treaty. Domicile under Irish law is generally the location of the individual's permanent home which is acquired at birth; it is retained unless steps are taken to change to another domicile. Residence rules Residency is established by: * spending 183 days or more in a tax year in Ireland; * spending more than 30 days in a tax year in Ireland, so long as the total number of days spent there in that tax year and in the preceding tax year amounts to 280 days or more; or * electing to become a resident for the tax year with the intent to reside in the country permanently. An individual will be considered ordinarily resident in any year in which he/she has been a resident in the 3 preceding years. Ordinary residence ends after 3 consecutive years of nonresidence. An individual is present for a "day" for residence purposes if he or she is present in Ireland at any time during the day. Taxable employment income All compensation from employment, including salary, commissions, bonuses, expense allowances and all cash and non-cash benefits, are included in taxable employment income. Taxable fringe benefits in a typical expatriate compensation package include: * employer reimbursed taxes; * employer reimbursed tuition payments; * cost-of-living allowances; C-27