1. BKR Employment Tax Practice Group

2. Agenda Tim Morris – Introduction Rachel MacPhee– Introduction
Topic – Short Term Business Visitors: Reporting requirements and challenges

3. Introduction Housekeeping
Before we start I’d just like to cover off a few housekeeping items.
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Now to start the webinar, I’ll hand over to

4. Registrants First Name Last Name Email Astrid Binger Abinger@wws-mg.de
Marco
Borioli
Rita
Auer
Carmen
Parvulescu
Rachel
MacPhee
Rebecca
Kemp
Amanda
Couzi
Lee
Muter
John
Conway

5. Running Order Blick Rothenberg Ferax Argus Orsmby & Rhodes WWS
Borioli & Colombo
Abou Nasr
Tri-Mer?
UNW?

17. Short Term Business Visitors
When dealing with temporary assignees to Ireland there are two separate issues to consider
The operation of the PAYE system of payroll deductions.
The relief from Irish tax due to the assignee under DTA between Ireland and the other jurisdiction.
Knowledge of the number of days of a temporary assignee is present and also preforms their duties in the State is essential in determining tax obligations, therefore it is imperative to track temporary assignee/business travellers days in the Ireland.
The operation of the PAYE system of payroll deduction and weather temporary assignee is from a DTA jurisdiction or Non DTA jurisdiction.
Meaning of ‘day’ and ‘workday’
A ‘day’ in Ireland is a day when any part of which an employee is present in Ireland
A ‘workday’ in Ireland is any day in which any work is preformed in Ireland

18. Depending on the number days and workdays present in Ireland, a temporary assignee will fall under one of the following categories;
Assignee in Ireland for more than 60 workdays but less than 183 days with a DTA jurisdiction.
Assignee in Ireland for not more than 60 workdays with a DTA jurisdiction.
Assignee in Ireland for not more than 30 workdays with a Non DTA jurisdiction.
Assignee in Ireland for more than 60 workdays but less than 183 days with a DTA jurisdiction
Where a temporary assignee of a DTA jurisdiction is present in Ireland for a period or periods of more than 60 workdays but not exceeding 183 days in a year of assessment (calendar year), and suffers withholding taxes at source in the home jurisdiction on the income attributable to the performance of the duties of the foreign employment in Ireland then when the following criteria are satisfied the employer will not be obliged to operate the Irish PAYE system in respect of the temporary assignee.
The assignee is resident in the DTA jurisdiction and is not resident in Ireland for tax purposes for the relevant year of assessment
There is a genuine foreign office or employment and
The remuneration is paid by, or on behalf of an employer who is not resident in Ireland
The remuneration is not borne by a permanent establishment which the employer has in Ireland
Once the employer is satisfied the conditions outlined above have been adhered to , the employer may apply to Revenue for a release from the obligations to operate PAYE.

19. Note with regard to the condition that the remuneration is paid by, or on behalf of, an employer who is not a resident of the other jurisdiction, Revenue will not grant a release from PAYE obligations where the assignee is;
Working for an Irish employer where the duties performed by the assignee are an integral part of the business activities of the Irish employer, or
Replacing a member of staff of an Irish employer, or
Supplied and paid by an agency outside Ireland to work for an Irish employer.
Also please note the release from obligation to operate the PAYE system will not be granted if the cost of the employment is recharged to the Irish employer.
Assignee in Ireland for not more than 60 workdays with a DTA jurisdiction
Where a temporary assignee of a DTA jurisdiction is present in Ireland for a period of not more than 60 workdays where the assignee will only have a presence in Ireland during one tax year or a presence in Ireland during two consecutive tax years. Revenue will not require the employer to operate the PAYE system in respect of income attributable to duties exercised in Ireland where the following conditions are athered to;
The assignee exercises the duties in Ireland for a total period of not more than 60 workdays in a tax year or two consecutive tax years and
The assignee is not on the payroll of an Irish entity and,
The assignee is resident in a DTA jurisdiction and is not resident in Ireland for the relevant tax year or years

20. Where the above conditions are met, Revenue will accept without enquiry that the assignee is taxable solely in their country of residency on the relevant employment income. No application has to be made to the Revenue. Revenue will not automatically release an employer from the obligations to operate PAYE where the period in which the assignee is in Ireland extends for more than a two year period. Where it is expected that the employee will spend 60 workings or less in the sate in any one year, but will have a recurring annual basis over more than two years , an application should be made to Revenue to release the employer from the obligation to operate the PAYE system. It is the same application which needs to be made for assignees spending more than 60 days in Ireland in a year of assessment.

21. Release from operating PAYE for temporary a temporary assignees
There are several requirements to be satisfied by a foreign employer to be release from the obligations to operate PAYE system in respect of temporary assignees form DTA jurisdictions The foreign employer must
Be registered in Ireland as an employer for PAYE tax purposes and
Where there is an intermediary paying the employee the employees of the foreign employer, supply details of the intermediary who is paying the employees and
Where there is a relevant person, supply details of the relevant person for whom the employees of the foreign employer are doing work in Ireland OR
Where the employees of the foreign employer are preforming in Ireland the duties of the foreign employment, and are paid by a connected entity in Ireland of the foreign employer on behalf of that employer or are paid by the foreign employer, and the connected local entity in agreement with the foreign employer has assumed responsibility for compliance with PAYE and social security obligations on behalf of the foreign employer, then the foreign employer need not register as an employer but must supply;
The PAYE registration number of the connected entity
its own full name and address and
Where there is a relevant person, the name and address of that relevant person for whom the employee of the foreign employer are doing work in Ireland.

22. Other requirements:
Maintain a record of the full name, latest Irish and overseas address, date of commencement and cessation of the employment, the location where the employee carries out the duties of the temporary assignment and the amount of earnings in respect of the temporary assignment and
Sign a written acknowledgement that in all cases where a liability is subsequently found in respect of payments of emoluments to an assignee, the employer will be liable under the relevant Irish legislation and any taxes due that should have been deducted
Supply evidence of withholding tax in the foreign jurisdiction on income attributable to the performance in Ireland of the duties of the foreign employment and
On request supply a copy of the contract relating to the assignee’s engagement in Ireland or other relevant details
Seek approval in writing from the Revenue within 30 days after the date the assignees takes up duties in Ireland.
Pending written clearance from Revenue, PAYE need not be operated if all the other conditions are met.

23. Assignees in Ireland from a Non DTA jurisdiction
Assignees in Ireland from a Non DTA jurisdiction. Where a non-resident employee from a non DTA jurisdiction preforms duties in Ireland for no more than 30 working day in a tax year or in a two year tax period, PAYE need not be operated in respect of income attributable to such duties. Where an assignee from a non DTA jurisdiction will have short-term business visits in Ireland on a recurring annual basis over more than two years , PAYE should be operated from commencement of the duties in Ireland. This applies even is the assignee has 30 work days or less in the Ireland in any one year.

24. Social security Requirements Per EU regulations governing the liability to social security, social security should not be paid in more than one jurisdiction simultaneously, in addition Ireland has a number of bilateral agreements governing social security with several non EU jurisdictions which again provide that social security should only be paid in one county. In relation to EU temporary assignees an A1 certificate covering social security must be produced in order to obtain an exemption from Irish social security known as PRSI. In the absence of this certificate employers are required to deduct PRSI from emoluments related to duties preformed in Ireland from the 1st day of insurable employment. Consequences of not operating PAYE system correctly The consequences for not operating the PAYE system correctly can lead to large PAYE liabilityies. The emolument received by the employee is seen as emoluments after deducting all PAYE liabilities and social security deductions. The foreign employer is liable to pay over to Revenue all PAYE and social security on the regrossed figure.

25. WWS

26. Borioli & Colombo

27. Abu Nasr

28. Ormsby & Rhodes

29. Tri Mer
If available

30. UNW
If available

31. Questions?

32. Webinar will be on the members area of the EMEA website
Confirm next meeting?
Next Topic – -
Social security (EU and non EU) (1)
Payroll obligation (1)
Tax relief for international mobile employees
Business visitors
Local expense policies applied overseas
Identifying relevant industries
Construction industry and payroll for sub-contactors
Consequences of non-compliance by foreign entities
Country registration requirements (2)
Website – Starting a Practice Group page
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