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McIlroy is no tax exile

The perception that Rory McIlroy is a tax exile in Dubai is wrong, a spokesperson has claimed

The Sunday Times reported that recently filed documents with the Companies  Registrations Office showed that McIlroy’s primary address is a building on the Palm Jumeirah in Dubai.

A spokesperson told the Irish Independent’s Karl MacGinty that “Rory’s personal tax residency in Dubai makes perfect sense,” as prize-money, tour win-bonuses and appearance fees are classed as income “and are taxed under regulations in the country in which they are won and, of course, where the individual resides.”

However, the fact that McIlroy’s management company Rory McIlroy Inc. is based in Ireland, meaning he will pay 12.5pc company tax on royalty payments from his multiple endorsement deals, is a “good news story for Ireland, without any catches, “ according to a member of his “backroom team.”

McIlroy’s spokesperson said that the world No 1 “doesn’t fulfill any of the Irish, UK or US tax residency requirements.”

Understanding tax is a challenge at the best of times, especially in the US. Deciding whether you a Resident and Nonresident Alien means looking at the “substantial presence test”. You can be “treated as a nonresident alien if you are present in the United States for fewer than 183 days during the current calendar year.”

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