Irish Revenue in April 2020 issued updated guidance concerning a wage subsidy relief program that is intended to provide financial support to Irish companies affected by the coronavirus (COVID-19) pandemic.
The updated guidance specifically concerns employer eligibility and “Phase I” of the operational guidance, and clarifies wage subsidy relief measures announced in March 2020. Read TaxNewsFlash
In order to be eligible for the COVID-19-related wage subsidy, an employer must be able to demonstrate that its business will be significantly and adversely affected by COVID-19 in the second quarter of 2020, resulting in an inability to pay employee wages as normal. This was previously defined as a 25% reduction either in the turnover of the employer’s business or in customer orders being received by the employer during the period of 14 March 2020 to 30 June 2020. Prior guidance also noted that when the 25% reduction would not be met, this did not preclude eligibility to participate in the relief program when an alternative supporting basis could be demonstrated by the employer.
Irish Revenue’s most recent guidance is in response to a number of queries and issues raised by companies with regard to the eligibility criteria—particularly start-up companies, “single corporates” with business divisions affected by COVID-19, companies with large cash reserves, and employers within multinational group structures. The guidance is to apply equally to Irish branches of foreign entities, and includes the following:
Read an April 2020 report prepared by the KPMG member firm in Ireland
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