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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.

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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.

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