Payment made without deduction of Income Tax

Revenue eBrief No. 084/22

Payment made without deduction of Income Tax

Tax and Duty Manual Part 42-04-66 – Payment made without deduction of income tax – has been updated to reflect the following:

  • Section 6 is amended to reflect the Finance Act 2018 change which provides that re-grossed income under section 986A is chargeable on the employee as Schedule E (employment) income. 
  • The examples contained throughout the manual have been updated and a new example has been inserted in section 3.2. 


6. Granting of credit for tax recovered
With effect from 1 January 2018 and confirmed by the Finance Act 2018, notwithstanding sections 18 and 19 TCA 1997, the re-grossed amount will be an amount chargeable to tax under Schedule E on the employee concerned.

The emoluments of an employee will include any re-grossed amount and credit may be granted to an employee for the additional income tax, paid by the employer on the re-grossed payment.

In relation to company directors, the position regarding the granting of credit in respect of tax deducted from emoluments is set out in Tax and Duty Manual Part 42-04-59.