We have been requested by a number of members to make representations on their behalf on the practical difficulties experienced in operating PAYE on non-Irish employments. At present if an employee spends more than 60 days in the State in the exercise of a non-Irish employment, the employer must operate PAYE even if the employee is Treaty protected.

We have made a detailed submission to the Revenue on the practical issues of cashflow and administrative burden for the employer company where it is clearly evident that no ultimate Irish tax liability arises as a result of the treaty (i.e. an individual who is working in Ireland for greater than 60 days but less than 183 days). Revenue have genuine concerns on the possible abuse of any amendment being made. At present we are working with Revenue to find a practical solution from the perspective of both our members and the Revenue.

Revenue intend issuing a statement of practice on the operation of PAYE on non-Irish employments exercised in the State. We will keep you up to date on the discussions.