Payroll tax deductions for non-Irish employments exercised in the State

Apr 23, 2018

A new Revenue Tax and Duty Manual on the tax treatment (PAYE) of employees who exercise non-Irish employments in the State replaces and supersedes Statement of Practice SP-IT/3/07.

Chapter 4 of the new manual contains the main changes from the Statement of Practice SP-IT/3/07 and:

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

References to the Schedule E basis of assessment change from the “earnings basis” to the “receipts basis” which took effect from 1 January 2018 (section 112 of the Taxes Consolidation Act 1997) are included in the manual.  Also included are new examples to reflect current year tax bands and rates.  

The new manual is Part 42-04-65 published on the Revenue website.