Employment Inducement Payments

Introduction

There may be a perception that payments made to individuals as an inducement to take up employment may be exempt from income tax. It is Revenue’s view that this is not the case. The basis of assessment, the persons chargeable and the extent of the charge are contained in Section 112 Taxes Consolidation Act 1997.

For the purposes of the PAYE system, income tax must be deducted at the time of payment, i.e. generally when the offer is made and accepted.