Revenue eBrief No. 231/21

20 December 2021

Employee payroll tax deductions in relation to non-Irish employments exercised in the State

Tax and Duty Manual Part 42-04-65 - Employee payroll tax deductions in relation to non-Irish employments exercised in the State -  has been updated as follows:

• Chapter 4 “Temporary Assignees – 1 January 2020 - Release for employers from the obligation to operate Irish PAYE” has been revised as follows:
  • Paragraph 4.2 - updated to give clearer guidance on scenarios for which an employer is released from the obligation to operate PAYE with regards to temporary assignees.
  • Paragraph 4.3 - additional narrative added with respect to the technical       interpretation of Article 15(2) of the OECD Model Convention.
  • Paragraph 4.5 – narrative regarding the timelines for which a PAYE dispensation should be sought has been updated.
  • Paragraph 4.7 – updated to reflect that information relating to procedures in place for the period to 31 December 2019 has moved to Appendix F.
• Chapter 5 – worked examples have been updated to reflect tax year 2021.
• Chapter 9 has been included to provide detail of the COVID-19 concessions      published by Revenue with respect to the Irish tax treatment of foreign      employments exercised in the State.
• Appendix C has been amended to include references to the United Kingdom where relevant.