Pay As You Earn (PAYE) Exclusion Order issued by Revenue

Non-resident directors and employees recruited abroad

Note

The information in this section refers to your current obligations. For your obligations before 01 January 2019, please see the Employers' Guide to PAYE.

Non-resident directors

Directors of Irish companies must pay tax in Ireland regardless of their residence position or where they carry out their duties.

In general, PAYE Exclusion Orders will not be issued in respect of non-resident directors of an Irish company.

PAYE Exclusion Orders may issue if the directorship income is exempt from Irish tax under a Double Taxation Agreement (DTA).

Non-resident employees recruited and working abroad

You do not need to apply for an Exclusion Order, or operate PAYE, for a non-resident employee who:

• is not resident in Ireland for Income Tax purposes
• was recruited abroad
• carries out all the duties of their employment abroad
• is not a director of your company
• and
• has no Income Tax liability in Ireland.

You do not need to include the employee on your payroll submission. You should keep a record of any payments you make to the employee.