Ireland – Changes Affecting Inbound Short-Term Business Visitors

Ireland – Changes Affecting Inbound Short-Term Business

The rules regarding inbound Short-Term Business Visitors (“STBVs”) have changed in Ireland. In brief, for the purposes of determining whether a payroll obligation exists for STBVs into Ireland, employers are required to consider the number of work-days spent in the state in a single year of assessment only. The new rule is effective beginning 1 January 2020.

1000

CONTACTS

flash-alert-2019-186

The rules regarding inbound Short-Term Business Visitors (“STBVs”) have changed in Ireland.

In summary, for the purposes of determining whether a payroll obligation exists for STBVs into Ireland, employers are required to consider the number of work-days spent in the state in a single year of assessment only.  The new rule is effective beginning 1 January 2020.  

The Irish Revenue confirmed the anticipated changes to its guidance surrounding STBVs into Ireland in eBrief no. 207/191.  (For related coverage see, GMS Flash Alert 2017-029 (15 February 2017).)

WHY THIS MATTERS

The new rule is a reversal of the considerable requirements issued in 2018 which made tracking Irish work-days across consecutive tax years and even multiple years necessary.  While the change highlights that STBV compliance is still on Revenue’s agenda, it is a welcome development.  As well as reducing the number of STBVs triggering Irish PAYE, it could reduce compliance-related administration. 

More Details

From 1 January 2020, there is automatically no obligation to operate PAYE (i.e., application not required) where all the conditions below have been met:

  • Visitor from a country with which Ireland has a double taxation agreement;
  • Less than 60 Irish work-days in the tax year (i.e., calendar year);
  • Employed and paid by a foreign employer;
  • Not Irish tax resident.  

KPMG NOTE

It is important to note the wording, which implies the change will apply to those travelling from countries that are party to a double taxation agreement (“DTA”) with Ireland.  The KPMG International member firm in Ireland awaits clarity on the non-DTA cases (i.e., the 30-day rule).  

Revenue has confirmed that further guidance will be issued early in the new year, and we will endeavour to send further clarification as we learn more. 

FOOTNOTE

1  To see Revenue eBrief No. 207/19 dated 11 December 2019, click here.

The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.

SUBSCRIBE

To subscribe to GMS Flash Alert, fill out the subscription form.

© 2022 KPMG, an Irish partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.

GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Connect with us

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today