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Tax Deductions

Employee payroll tax deductions in relation to non-Irish employments exercised in the State

A new Tax and Duty Manual, Part 42-04-65,  has been created. It sets out the position regarding the tax treatment (PAYE) of employees who exercise non-Irish employments in the State. The Manual replaces and supersedes Statement of Practice SP-IT/3/07 with effect from 1 January 2018.

The main changes from the Statement of Practice are set out in Chapter 4 of the Manual which now:

  • reflects Revenue’s position on the circumstances in which an employer will be released from the obligation to operate PAYE
  • includes new examples
  • provides clarification on Revenue’s interpretation of Article 15 (the Employment Article) of the OECD Model Tax Convention on Income and Capital.

The Manual also references the new Schedule E basis of assessment, which took effect from 1 January 2018. It also contains updated examples in Chapter 5 for current year tax bands and rates.

(Source: Revenue)

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