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.