Global

Details

  • Service: Tax, Global Mobility Services
  • Type: Regulatory update, Survey report
  • Date: 1/4/2014

Special considerations for short-term assignments 

Taxation of international executives
Residency rules
Payroll considerations
Taxable income
Additional considerations


For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.


Residency rules

Are there special residency considerations for short-term assignments?


Yes.


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Payroll considerations

Are there special payroll considerations for short-term assignments?


Yes.


Incidental duties


The exercise of incidental duties in Ireland for no more than 30 days in aggregate in a tax year, should not give rise to a tax charge.


Short-term business trips


Revenue will not require an employer to operate PAYE where an application for treaty exemption is made and the following conditions are satisfied.


  • The individual is resident in a country with which Ireland has a double taxation agreement and is not resident in Ireland for tax purposes for the relevant tax year.
  • There is a genuine foreign office or employment.
  • The individual is not paid by, or on behalf of, an employer resident in Ireland.
  • The cost of the office or employment is not borne, directly or indirectly, by a permanent establishment in the State of the foreign employer.
  • The duties of that office or employment are performed in Ireland for not more than 60 working days in total in a year of assessment and, in any event, for a continuous period of not more than 60 working days.

Treaty relief


Exemption from Irish payroll tax may be available under the relevant employment article contained in a double taxation agreement if a clearance in writing from the revenue commissioners is made within 21 days of the date the assignee takes up duties in the State.


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Taxable income

What income will be taxed during short-term assignments?


In general, income derived from Ireland and income derived from employment duties exercised in Ireland.


Tax free subsistence may be paid or reimbursed for the first 12 months of a temporary assignment provided the period of assignment in Ireland does not exceed 24 months.


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Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Ireland?


Exemption from Irish tax may be available under the relevant employment article contained in a double taxation agreement. An application must be made to be excluded from the requirement to operate PAYE.




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Taxation of international executives