PAYE / Payroll

Pay As You Earn (PAYE) system – Employee payroll tax deductions in relation to non-Irish employments exercised in the State.

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Revenue eBrief No. 207/19

Pay As You Earn (PAYE) system – Employee payroll tax deductions in relation to non-Irish employments exercised in the State.

Chapter 4 of Tax and Duty Manual Part 42-04-65 has been updated to include a new section 4.6, which gives details of the position of foreign temporary assignees from 1 January 2020. Further guidance on the operation of this Tax and Duty manual will issue in the new year.

Extract:

Chapter 1
1 Introduction
This manual outlines the treatment of employee payroll tax deductions in relation to non-Irish employments exercised in the State. It replaces and supersedes Statementof Practice SP-IT/3/07.

1.1.3 PAYE position with effect from 1 January 2006 as regards non-Irish sourced employment income
With effect from 1 January 2006 –

  • (a) the income of a non-Irish sourced employment attributable to the performance in the State of the duties of that employment is chargeable to income tax under what is known as Schedule E and is within the scope of the PAYE system of deduction at source;
  • (b) the income of a non-Irish sourced employment attributable to the performance outside the State of the duties of that employment, whilst it may be chargeable to Irish tax in the hands of the employee, is not within the scope of the PAYE system of deduction at source.