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Taxes in Ireland: A Guide for Overseas Employers

When your HR department is setting up an assignment overseas, one of the primary tasks is figuring out the tax rules in the host country.  A client of Shield GEO was sending an employee to Ireland, and wanted to know how to handle filing of tax returns, and what their employee needed to do to register for tax withholding.

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What Tax Registration is Needed by the Employee?

The Irish tax revenue agency manages tax withholding and credits and sets the tax rate based on income.  An employee on their first assignment must register for the online myAccount for PAYE services, and apply for a Personal Public Service Number for tax withholding and credits.

Is Filing an Irish Tax Return Required for Expats?

If an expat only has PAYE income (from salary or allowances) no income tax return is required.  However, if they have non-PAYE income then Form 11 must be filed.  Non-PAYE includes rental income, foreign income or dividends, so may not apply to most employees on assignment.

Under What Circumstances Should an Employee on Assignment File a Return?

Even if Form 11 is not filed, there is Form 12 that is available for claiming allowances, non-payroll pension payments or other credits to reduce taxes, if for some reason they have not been accounted for.

Does the Employee Need to Hire a Tax Accountant for Filing?

Not really, since the forms are simple to fill out with basic information.  There is an alternative by using the P21 Balancing Statement, which is a summary of employment income and taxes paid, which can be used for any refunds or unpaid taxes owed.

The Shield GEO Solution

This is a great example of how Shield GEO assists our clients with foreign employment and tax issues.  In a case like this, our account manager and local employer of record will work together to make sure that all tax registration is completed, the correct tax rate is used, and any forms that need filing by the employee are completed.

Every country has very unique employment and payroll regulations, and using an employer of record who can provide you with expert advice and guide you through the process is the best solution for navigating foreign rules to ensure a successful assignment.

Need help employing in Ireland? Get in touch!

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