Taxation News

Taxation News

PAYE directions for non-resident employees of Irish private sector employments
The Tax and Duty Manual – PAYE Exclusion Orders – has been amended. A new paragraph (5.7) has been inserted concerning the treatment of employment income paid to non-resident employees of Irish private sector employers who perform duties both inside and outside the State.

The new paragraph provides that, subject to conditions, an Irish private sector employer may seek a direction from the Revenue Commissioners allowing it to withhold PAYE on the employment income relating to the non-resident employee’s Irish workdays only. A supporting example has been included.

Enhanced Reporting Requirements
From 1 January 2024, employers who pay any of the expenses/benefits below to their employees will be required to report those benefits to Revenue.

  • Travel & Subsistence
  • Small Benefit Exemption
  • Remote Working Daily Allowance

To report these expenses/benefits, Employers and Agents will need Enhanced Reporting Requirements (ERR) permissions.

Employers will automatically be assigned ERR permissions via their existing ROS certificate. ERR permissions will not automatically apply to any sub certificates under the Employer certificate. The Employer must log into their ROS permissions screen to assign ERR accessibility to any sub certificate.

An additional Agent permission has been created to allow Agents to report ERR on behalf of their clients. Financial Agents will receive the ERR permissions automatically via their existing ROS certificate.

Non-Financial Agents will have to apply to Revenue for the ERR Agent certificate under their existing TAIN.

An Agent who has ERR permissions will be able to assign sub certificates to submit & view or view only ERR.

We anticipate 4 different combinations of Agent types under the PREM tax head:

  • Financial Agent
    (has all permissions)
  • Payroll & ERR Agent
    (can report Payroll & ERR)
  • Payroll Only Agent
    (can only report Payroll)
  • ERR Only Agent
    (can only report ERR)

Employers can have up to three different Agents on file, but an Agent type cannot be duplicated.

For example, an Employer cannot have a Payroll & ERR Agent along with an ERR Only Agent.

Revenue’s public consultation on Modernising Ireland’s Administration of Value-Added Tax
Ireland’s system for administering Value-Added Tax (VAT) needs modernizing. Revenue recently issued a consultation paper to stimulate discussion and garnet views from across the breadth of Ireland’s VAT community about the benefits, challenges and opportunities presented by VAT administration modernization.

In every stage of this change cycle – planning, development, implementation and review – the real-life business experience of VAT affected stakeholders will be a vital input, so Revenue intends that this present, early-stage consultation is just the first in a series of engagements on a VAT Modernisation programme over the coming years.

Real-time Reporting and EInvoicing for B2B and B2G Trade

This opening paper looks particularly at the potential for moving Ireland’s business-to-business (B2B) and business-to-government (B2G0) transactions into the realm of real-time, digital VAT reporting, supported by electronic invoicing. Recent years have seen many developed economies undertake reforms in this direction, providing plenty of international experience from which Ireland can learn. At EU level, discussions are currently underway on the European Commission’s Vat in the Digital Age (ViDA) proposals which plan to introduce similar developments in respect of cross-border transactions between Member States.

The paper discusses these concepts. It looks at how the adoption of a new domestic Digital Reporting Requirement (DRR) could benefit the business community and improve Revenue’s effectiveness but comes too with implementation challenges that need to be understood and addressed. It outlines eInvoicing, its current position in the VAT system, and how it can support the introduction of real-time reporting.

It considers the current EU proposals, particularly focused on facilitating cross-border trade, which will impact on Ireland’s approach here.