Revenue Note for Guidance

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Revenue Note for Guidance

986 Regulations

Summary

This section empowers the Revenue Commissioners to make regulations in respect of the assessment, charge, collection and recovery of income tax under the PAYE system. The Income Tax (Employments) Regulations, 2018 (S.I. No. 345 of 2018), are those currently in force.

Details

(1) Regulations are to be made by the Revenue Commissioners in regard to the assessment, collection and recovery of income tax under the PAYE system. The regulations may include provision —

  • 1(a) for requiring an employer on making any payment of emoluments to deduct or repay tax based on the rate(s) of tax and reliefs which are set out on the revenue payroll notification;
  • 1(c) for the inspection by the Revenue Commissioners of wages sheets and other documents and records to ensure that the PAYE system is properly operated;
  • 1(d) for the collection and recovery of tax which has not been recovered during the year;
  • 1(e) for appeals against matters in the regulations and for which there is no other appeal procedure;
  • 1(f) for the deduction of tax at the standard rate and higher rate, as appropriate;
  • 1(g) for the reduction of emoluments by any occupational pension scheme contributions, qualifying premiums under an approved annuity contract (RAC), contributions to a personal retirement savings account (PRSA), contributions to a Pan-European Personal Pension Product (PEPP) or contributions to permanent health benefit schemes before making a calculation for the deduction or repayment of tax;
  • 1(j) for treating some persons, who are not employers, as employers as required.
  • 1(k) for the collection and recovery of tax on non-PAYE income through the PAYE system;
  • 1(l) for the collection of tax from the employee rather than the employer, where the employer has failed to deduct tax;
  • 1(m) requiring an employer to submit details of emoluments paid and tax deducted and other relevant information to the Revenue Commissioners in such manner and form as they may approve or prescribe;
  • 1(o) for requiring an employer who makes a payment to which this Chapter applies to an employee to notify the Revenue Commissioners of the employee particulars within a period of time specified in the regulations.

(1A) Regulations under this section may also contain supplementary provisions deemed necessary by the Revenue Commissioners to enable persons to fulfil their obligations or to fulfil the proper implementation of the provisions of this Chapter or regulations made under this section.

(1B) This section also provides for the making of regulations in respect of reportable benefits. Such regulations shall prescribe the form to be used for providing, within a set period, the particulars or documents required.

(2) The regulations made under this section apply regardless of anything in the Income Tax Acts but taxpayers’ rights of appeal are not affected.

(3)(a) & (b) Revenue payroll notifications should be prepared by the Revenue Commissioners with a view to securing that in so far as is practicable the total estimated tax payable in respect of emoluments for the year of assessment (after allowing a provisional deduction for allowances and reliefs and taking into account any overcharge or undercharge for previous years) is deducted from emoluments paid in the year.

(4) The amounts in respect of reliefs from income tax stated on a revenue payroll notification may be rounded up to a convenient greater amount. Any tax which is not deducted for a year of assessment as a result of such rounding up may be recovered in a subsequent year of assessment.

(6)(a) & (b) The provisions of this Chapter shall not apply to employers who only have one domestic employee earning less than €40 a week.

(6A) If the Revenue Commissioners are satisfied that it is unnecessary or not appropriate for an employer to comply with any of the PAYE regulations a notification to that effect may be issued to the employer in such circumstances.

(7) Regulations made under the section are required to be laid before Dáil Éireann and may be annulled by the Dáil by a resolution within the following 21 days. This is, however, without prejudice to anything already done under the regulations.

Relevant Date: Finance Act 2025