Irish PAYE and temporary workers

Statement of Practice (SP IT/3/07) was issued by the Irish Revenue Commissioners in September 2007. The statement confirms the practice, introduced in January 2007, whereby non Irish employers based in treaty countries are no longer required to apply Irish PAYE where their employees are present in Ireland for not more than 183 days in the calendar year.

The remuneration of the temporary assignee must remain liable to tax in the treaty country and the cost of the remuneration cannot be borne by an Irish based permanent establishment. In addition, certain administrative criteria must be satisfied by the employer, including obtaining a clearance from the Revenue that PAYE need not be applied by the employer, or their Irish agent. Clearance requests must be made by the end of October for existing assignments, and within 21 days of commencement for future assignments.