Advice for Ukrainian nationals working in Ireland

Tax treatment of Ukrainian citizens who work remotely in the State for Ukrainian employers

Ukrainian citizens have come to the State because of the war in their country. Revenue’s treatment of the tax position of Ukrainians who continue to be employed by their Ukrainian employer while performing the duties of their employment remotely from Ireland is set out below.

Liability of Ukrainian employment income to Irish Income Tax and concessional treatment

Irrespective of the tax residence position of the employee or the employer, income from non-Irish employment attributable to the performance in Ireland of the duties of that employment is chargeable in Ireland to Income Tax and Universal Social Charge (USC).  It is also within the scope of the Pay As You Earn (PAYE) system of deduction of Income Tax at source. These requirements are outlined in detail in Tax and Duty Manual (TDM) Part 42-04-65 (Employee payroll deductions in relation to non-Irish employments exercised in the State).

However, by way of concession, Revenue will:

• treat the Irish-based employees of Ukrainian employers as not being liable to Irish Income Tax and USC on Ukrainian employment income that is attributable to the performance of duties in the State
• and
• treat the Ukrainian employers as not being required to operate the PAYE system on such employment income.

The concession applies solely to employment income that is paid to the Irish-based employees by their Ukrainian employer.

Corporation Tax

An employee, director, service provider or agent may have come to Ireland because of the war in Ukraine and may, as a result, have an unavoidably extended presence in the State. For Corporation Tax purposes, Revenue will disregard such presence in Ireland in respect of any company resident in Ukraine, where the employee, director, service provider or agent would have continued to be present in Ukraine, but for the war there.

Duration of treatments and conditions

These concessionary treatments will apply for the tax years 2022 to 2024 (inclusive) where:

• in relation to Ukrainian employment income:
  • the employee would have performed their duties of employment in Ukraine, but for the war there
  • and
  • the employee remains subject to Ukrainian Income Tax on their employment income for the year
• and
• in the case of Corporation Tax, the employee, director, service provider or agent would have been present in Ukraine, but for the war there.

With regard to any individual or relevant entity that avails of the concessional treatment set out above, any documents or other evidence (such as a record with the individual’s date of arrival in the State) showing that it was due to the war in Ukraine that the individual came to Ireland and performed their work or duties here, should be kept. Revenue may request such evidence, as needed.

On 26 March 2024, Revenue confirmed in eBrief No. 098/24 that these concessional treatments 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.