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.
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.
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.
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.
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.
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.
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