If you have an employee working and living abroad for an Irish registered company you need to apply for a PPS number for them to both pay PRSI in Ireland as well as apply for Tax Exclusion Order (TEO) if applicable. What you will need from your employee abroad is:
- A clear, legible copy of their passport
- National Identity Card (if available)
- Birth Certificate
- Letter from the Employing Company confirming that the person is employed through an Irish company but working abroad
- Proof of address abroad, e.g. a utility bill
- Completed application form (REG 1)
Regarding social tax and taxable benefits (BIK), if there is a TEO (Tax Exclusion Order) in place, employees placed in any country that Ireland has a double taxation agreement, will not have to pay the USC (Universal Social Charge). However for countries without double taxation agreements, they will have to pay the USC.
A TEO in place also means no income tax is paid.
Before a TEO is in place employees are legally obliged to pay all taxes. This may be refundable once a TEO is in place however.
All the best
The Team at Jefferson
