Revenue has confirmed that the concessional tax treatment for Ukrainian citizens working remotely in Ireland for Ukrainian employers will continue to apply for the tax year 2024, subject to qualifying conditions. The concessional treatment will cease with effect from 1 January 2025. From this date, the Irish-based employee and the Ukrainian employer will be required to comply with the Irish tax requirements arising from the exercise of the duties of the Ukrainian employment in Ireland.
Revenue's concessional treatment applies solely to the employment income paid by a Ukrainian employer to their Irish-based Ukrainian employees performing the duties of their employment remotely from Ireland and who are working in the State as a result of the war in their country. The concession provides that in relation to Ukrainian employment income:
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Irish-based employees of Ukrainian employers are not liable to Irish income tax and USC on Ukrainian employment income that is attributable to the performance of those employment duties in the State, and
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The Ukrainian employers are not required to operate PAYE on such employment income.
Revenue also disregards the presence of these employees in Ireland for corporation tax purposes in respect of any company resident in Ukraine, where the employee, director, service provider or agent would be present in Ukraine but for the war there.
Any individual or relevant entity that avails of these concessional treatments should continue to retain evidence to support compliance with the qualifying conditions.