Accounting period 1/1/19 – 31/12/19.
A fee of €10,000 is declared and paid to the director in March 2020. A payroll submission is filed in March 2020 with the details of the director’s salary and emoluments for that period, including the €10,000. The payment date that is reported on the submission is the date the payment was made to the director.
The PAYE system calculates tax due on the amount of payments received by a director or employee in a year of assessment. Proprietary directors however are assessed to income tax in respect of the amount actually earned in a year of assessment.
Therefore the €10,000 must be declared by the proprietary director in the 2019 Income Tax return, the year it was earned.