Foreign Employment Income

Section 15 Finance Act 2006 (which amended Section 18 TCA 1997) provided that so much of the income of a foreign office or employment of an individual as is attributable to the performance in the State of the duties of that office or employment is, with effect from 1 January 2006, chargeable to income tax under Schedule E (instead of Case III of Schedule D). Tax is accordingly deductible under PAYE on such income. This topic has already been covered in Revenue eBriefs 43/2005, 9/2006, 16/2006 and 28/2006.

Following consultation via TALC, the Revenue Commissioners have now issued a Statement of Practice:

Statement of Practice SP - IT/3/07 Pay As You Earn (PAYE) System - Employee payroll tax deductions in relation to non-Irish employments exercised in the State.