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Headline Verdana BoldEmployment Tax UpdateMoving together. Making tomorrow17 January 2018

Employment Tax UpdateJanuary 2018© 2018 Deloitte. All rights reserved

Intro & Finance Act 2017 Comments

Daryl Hanberry


• Modest, wide-ranging Budget

• 3 Pillars: Safeguard national finances, Promote fairness and improvements to life and Long-term investments

• The “Squeezed Middle” Budget

• “Hidden” Fiscal Space

• €320M Fiscal Space + €830M additional taxes

Finance Act 2017 Comments

Key Employee Engagement Programme (“KEEP”)

Employment Tax UpdateOctober 2017© 2018 Deloitte. All rights reserved

Employment Tax UpdateJanuary 2018

Share-based remuneration

Introduction of a share-based remuneration incentive for unquoted SME companies to attract key employees.

SME

< 250 employees

< €50M Turnover

< €43M Balance Sheet Total

Qualifying share options

Available for qualifying share options granted between 1 January 2018 and 31 December 2023.

CGT on disposal

Gains arising to employees on the exercise of KEEP share options will be liable to Capital Gains Tax on disposal of the shares, in place of the current liability to income tax, USC and PRSI on exercise.


Finance Act 2017 Highlights

Target Areas Measures

1. Share Based Remuneration• New SME focused share option incentive plan - KEEP• Income tax/USC/PRSI savings at exercise • CGT rate (33%) on entire gain (max 19% saving for an employee)

2. PAYE Modernisation• Effective 1 January 2019• Employer PAYE Compliance Project in 2018 (€50M yield) • Range of compliance interventions required

3.Increase to employers’ National Training Fund Levy

• Employer PRSI increase of 0.1% to 10.85% - Class A and H contributions• 0.1% increase in 2019 and 2020 respectively• Subject to implementation of reforms

4. USC & PRSI Merger• Working group in 2018• Competitive and resilient personal tax system


Finance Act 2017 Highlights

Target Areas Measures

5. Gross-Ups (Tax–On-Tax)• PAYE not operated correctly• Legislative basis from 1 January 2018 to recoup PAYE on a grossed-up basis• Significant cost for errors by employers

6.Employment Income – New Cash receipts basis

• Moving from an earnings basis to a receipts basis with effect from 1 January 2018 • Most employees - no effect


Income Tax Band Cuts

Finance Act 2017

Income Tax Bands 2017 2018 Change

Single Person €33,800 €34,550 €750

Married, Single Income €42,800 €43,550 €750

Married, 2 Incomes €67,600 €69,100 €1,500


USC Cuts

Finance Act 2017

USC Bands (Employees) 2018 Change

€0-€12,012 0.5%

€12,013 - €19,372 * 2% 0.5%

€19,373 - €70,044 4.75% 0.25%

>€70,044 8%


• Marginal rate on incomes up to €70,044 reduced from 49% to 48.75%

• €206M cost

* Increased by €600


Other Tax Cuts

Home Carer’s Credit – increase of €100 p.a. to €1,200

Earned Income Credit – increase of €200 p.a. to €1,150

0% BIK on Electric Vehicles and review of BIK on vehicles

Tapering of Mortgage Interest Relief. Ceases from 2021

Pre-letting expenses – Rented Residential Property

KEEP Scheme welcome

Brexit – Missed Opportunities

No reduction to 52% marginal rate

No enhancements to SARP or FED Relief


Latest developments on various Employment Tax matters

Billy Burke


The changing face of employment arrangements


The changing face of employment arrangements

Employment Tax Update

Employees

Contractors

Personal service companies

The gig economy/Contingent workers


• Still a hot topic with Revenue

• Contract of Service v Contract for Services

• Employed v Self-Employed

• Code Of Practice For Determining Employment Or Self-Employment Of Individuals – last updated 2007

• Department of Finance and Department of Social Protection launched consultation process January 2016 – no update as of January 2018

Contractors

Back to basics – from an employment tax perspective



• Indicators of a Contract of Service:

• Supply of labour only

• Lack of control/management

• Not in business on their own account

• Cannot subcontract

• No financial risk

Contractors

Back to basics – from an employment tax perspective


• Indicators of a Contract for Services:

• Owns his/her own business

• Is responsible for management of business

• Has control over what is done, etc.

• Can subcontract

• Can profit from business

• Can provide services to more than one business at a time


• Intermediary-type structures are becoming more prevalent

• Individual sets up a Personal Services Company by creating a limited company (“Consulting Limited”) and becomes an employee of that company

• Consulting Limited provides employee services to end user

• Consulting Limited company applies PAYE to employee wages

• Consulting Limited does not provide services to any other company

Personal Service Companies (PSC)




Deloitte Global Human Capital Trends




• Contingent workers typically fall under the label of freelancers or independent contractors

• They are hired on a per-project or per-job basis

• In the gig economy, individuals choose if and when they want to work.

• They can also work simultaneously for different “employers” without fixed contracts.




The Taylor Report – July 2017

Commissioned by the UK Government

Report into how employment is changing in the UK with a focus on the gig economy

Key recommendations:

• Employment status: worker status should be retained; with new legislation bringing clearer definitions of employees, workers and the self-employed

• Tax: all workers should be employees for tax purposes; confirms the move towards consistency in taxation between the employed / self-employed

• Zero-hours workers: potential higher national minimum wage for non-guaranteed working hours; right to request guaranteed hours after 12 months

• National insurance changes: bring employed and self-employed in line




•PRSI;

•Deferral of tax liabilities;

•Tax-free expenses;

•Pension & tax planning opportunities.

Potential loss to the Exchequer

•Rights in respect of holiday pay, sick pay, maternity pay and employer pension contributions;

•Unfair Dismissals.

Employment protection legislation

•Reduced contributions to the social insurance fund;

•Full range of state benefits available to Class A contributors not available.

Social Security considerations

Contractors, Personal Service Companies & Contingent Workers

Department’s view on possible implications of such arrangements



Recent developments and areas of interest


Recap

• Irish office/directorship = chargeable persons

• Resident and non-resident

• Executive and non-executive

• Historically travel expenses for non-executive directors were taxable

• Public Consultation on Tax Treatment of Travel and Subsistence – July 2015

• FA 2016 change – Tax free reimbursement for non-resident, non-executive directors for travel to Board meetings in Ireland from 1 January 2016

Directors

Update on the Taxation of Non-Executive Directors


Update

• Some relief for resident, non-executive directors

• Travel expenses incurred from 1 January 2017

• Can be reimbursed tax free where:

1. Director is NED of the company

2. Director is Irish resident

3. Meetings attended must be for the purpose of conducting the business of the company

4. The amount you pay the director for working a complete period of 12 months in the tax years must not exceed €5,000, excluding expenses (fees annualized if director serves a shorter period, to see if they qualify for the exemption)

• If over €5,000, then expenses fully taxed


• Changes from 1 April 2017

• Motor travel Civil Service rates revised

• New band system introduced for mileage

• Subsistence Civil Service rates revised

• New ‘Vouched Accommodation’ rate introduced for Dublin

• Changes to foreign subsistence rates

• Things to consider

1. System updates

2. Policy updates

3. Retrospective application

Updated Motor Travel and Subsistence




Updated Motor Travel Rates


Distance Bands (km) Engine Capacity (cc)

Up to 1200 1201 – 1500 1501 +

Band 1 0 – 1,500 37.95 cent 39.86 cent 44.79 cent

Band 2 1,501 – 5,500 70.00 cent 73.21 cent 83.53 cent

Band 3 5,501 – 25,000 27.55 cent 29.03 cent 32.21 cent

Band 4 25,001 + 21.36 cent 22.23 cent 25.85 cent

Distance (km) Engine Capacity (cc)

Up to 1200 1201 - 1500 1501 +

Up to 6437 39.12 cent 46.25 cent 59.07 cent

6438 + 21.22 cent 23.62 cent 28.46 cent

With effect from 1 April 2017

From 5 March 2009 to 31 March 2017


Updated Subsistence Rates


Day Allowance Overnight Allowance

5 hours < 10 10 hours + Normal Rate (first14 nights)

Reduced Rate (next14 nights)

Detention Rate (next 28 nights)

€14.01 €33.61 €133.73 €120.36 €66.87

Day Allowance Overnight Allowance

5 hours < 10 10 hours + Normal Rate(first 14 nights)

Reduced Rate(next 14 nights)

Detention Rate(next 28 nights)

€14.01 €33.61 €125 €112.50 €62.50

With effect from 1 April 2017

Vouched Accommodation (VA) Dublin Only

Vouched Accommodation Meals

Vouched cost of accommodation up to €133.73 plus €33.61

From 1 July 2015 to 31 March 2017


• Change in the way the tax on such taxable benefits are processed

• Previously included in taxable pay via payroll

• Now taxable element will be coded into employees Tax Credit Certificate

• With effect from 1 January 2018

Taxation of Illness / Occupational Injury Benefit from DEASP



Revenue Audits – Focus Areas

Employment Taxes Update

Ongoing Recent Future

Directors fees Professional subscriptions Treatment of Equity

Travel & Subsistence Mobile Phones Small Benefits Exemption

Expenses Provision of Accommodation/Flights Staff Entertainment

Contractors Non-Executive Directors PAYE Settlements

Medical Insurance Agency Workers Foreign Contractors

Company Cars Terminations Flexible Working Arrangements


Finance Act 2017 Change

• Legislative basis for ‘gross-up’

• Where PAYE is not operated by an employer

• All payments will be treated as received net by employee

• Has the effect of doubling any potential liability

• With effect from 1 January 2018

Example:

€100 gross, marginal rate of 52%, tax due €52

Versus

€100 net, marginal rate of 52%,

Re-grossed income €100/.48 = €208.33

Tax due €108.33

Regularising Tax Defaults – Settlement Options


The corporate workforce is changing – increase use of gig economy/contingent workers

Significant changes to Motor Travel and Subsistence rules – action required? P35 deadline

Revenue Audits – focus areas and new provision for gross-ups


Global Mobility

Orla O’Connor


STBT Inbound


Employer Withholding Obligations for Foreign Employees working in Ireland

Treaty Countries* Non-Treaty Countries

30** workdays or less in a tax year No PAYE Obligation No PAYE Obligation

Between 30 and 60 workdays in a tax year No PAYE Obligation*** PAYE Obligation

More than 60 workdays but less than 183days in a tax year

PAYE needs to be operated, unless company has received a PAYE Dispensation***

PAYE Obligation

More than 183 days in a tax year PAYE Obligation PAYE Obligation

*The above is on the basis that the foreign employer does not have a Permanent Establishment (“PE”) in Ireland.**30 day exemption is available where incidental duties only performed in Ireland***Becoming increasingly difficult to qualify in light of the new rules under revised Revenue Statement of Practice.

STBT Inbound

Global Mobility Update

Inbound STBT – Irish Payroll Obligations


What has changed?

• Revenue interpretation of Treaty condition

• “Remuneration is paid by, or on behalf of, an employer who is not a resident of Ireland”

• Condition not satisfied IF:

• “Integral” duties of an Irish employer, or

• Replacing a member of staff of an Irish employer, or

• Gaining experience working for an Irish employer, or

• Supplied and paid by an agency (or other entity) outside the State to work for an Irish employer.

• Charging of employment costs to Irish entity (directly or indirectly)

Revised Revenue Statement of Practice IT/3/07



Deloitte’s View

• Impacts PAYE withholding and year end tax return position for employees

• Not helpful in light of Brexit opportunities/FDI

• Very little guidance provided by Revenue – meaning of the words “integral” & “gaining experience” very subjective

• 21 day application period still a problem

Deloitte Advice

• Continue to apply for PAYE dispensations where conditions are met.

• Non-resident employers should review temporary assignments to Ireland and consider whether PAYE needs to be applied in Ireland at the outset.

• Employers should put robust tracking systems and processes in place to identify STBT’s who may fall within the Irish PAYE net.

Inbound STBT


Global Mobility Workshop

Date & Time: 6 March 2018, Full dayVenue: Deloitte Greenhouse, Earlsfort Terrace, Dublin 2Limited spaces: 25Interactive session – Presented with case studies



Jackie Coughlan

Employment Tax UpdateJanuary 2018© 2018 Deloitte. All rights reserved© 2018 Deloitte. All rights reserved

Drivers / Benefits

Equity Compensation

Employee Retention

Employee Engagement

Employee Motivation

Competitive in the market.

Drive Performance


New Share Scheme for SMEs


Introduction of a share-based remuneration incentive for unquoted SME companies to attract key employees.

Available for qualifying share options granted between 1 January 2018 and 31 December 2023.

Gains arising to employees on the exercise of KEEP share options will be liable to Capital Gains Tax on disposal of the shares, in place of the current liability to income tax, USC and PRSI on exercise.


Various conditions to be satisfied for options to qualify under KEEP scheme

KEEP: Conditions to Consider

Qualifying

Company

Excluded

Activities

Qualifying

Share Option

Ministerial

Order

Limitations

Qualifying

Individual

KEEP Scheme

Main Conditions


KEEP: Qualifying Company

Qualifying Company

• Irish or EEA incorporated and Irish resident or if EEA resident carries on a business in the State through a branch or agency

• Exists wholly/mainly for purposes of carrying on a qualifying trade on a commercial basis

At Grant

• < 250 employees and either turnover not more than €50M and/or a balance sheet not exceeding €43M; and

• The total market value of the issued but unexercised qualifying options does not exceed €3M.

Throughout Grant to Exercise Period (not < 12 mths)

• Unquoted with none of its shares quoted on unlisted securities market other than Enterprise Securities Market or a similar stock exchange in EEA or treaty country; and

• Not regarded as in difficulty for the EU Commission Guidelines on state aid.

Qualifying Company

Excluded Activities:

• Dealing in Commodities or futures in shares, securities or other financial assets

• Financial activities

• Professional services

• Dealing in or developing land

• Building and construction

• Forestry, and

• Operations in the coal industry or steel and shipbuilding

Professional Services:

• Services of a medical, dental, optical, aural or veterinary nature

• Services of an architectural, quantity surveying or surveying nature, and related services

• Services of accountancy, auditing, taxation or finance

• Services of a solicitor or barrister and other legal services, and

• Geological services


KEEP: Qualifying Share Option

New, ordinary fully paid up shares in qualifying company

No preferential rights to dividends, assets on a winding up or redemption

Written contract outlining terms and exercise price at least equal to market value on grant

Cannot be exercised within 12 months except in limited circumstance or more than 10 years post grant


Qualifying Individual

Overriding limit: cannot exceed 50% of

remuneration in a year

Work at least 30 hours per week

If satisfy the conditions to date of cessation

exercise within 90 days

Cease to qualify if exceed this 15% limit

€100,000 in a year or €250,000 over 3

Fulltime employee/director in a qualifying company

Cannot own, directly or indirectly, more than 15% of the company

Office or employment capable of lasting > 12

months

KEEP: Qualifying Individual


KEEP: Areas to watch / Issues to consider

Annual limit on employee award

€100k but also cannot exceed 50% of remuneration

Excluded Activities: extensive list as defined in the legislation

Financial activitiesProfessional services

Must be an employee/director of the qualifying company

Employee/Director ceasing to be a qualifying individual – cannot exceed

15% ownership

Reporting obligation annually Valuation required on date of grant

Tracking of awards to ensure don’t breach €3M limit


KEEP: Example

• Ray is granted an option on 11 October 2018 to buy 10,000 shares at €1 per share. Market value of shares at date of grant is €1 per share.

• Option exercised 11 October 2021, 10,000 shares purchased at €1 per share. Market value at date of exercise is €2 per share.

• Shares sold 11 October 2022, 10,000 shares sold at market value of €3 per share.

• His employment income (excluding options) is greater than €70,044.

Non-KEEP Options KEEP Options

Liability at Grant N/A N/A

Liability at Exercise €5,200 (52%) N/A

Liability on Sale €3,300 (33%) €6,600 (33%)

Total Tax Liability €8,500 €6,600

Results in a 19% tax saving on the gain at exercise and the full tax liability is deferred to the date of sale.

Shares don’t satisfy the holding period for entrepreneurial relief


KEEP

Example

• Dimensions Limited is an Irish incorporated and tax resident company, involved in the exportation of Irish manufactured clothing

• It is a family business owned by James and Eleanor Dunne (75%) and their son Patrick (25%)

• Alison was hired into the business in 2017 to drive online marketing

• While the business is doing well cash flow is strained and they offered Alison €50,000. She accepted this but advised she is keen to own part of the business if salary cannot be increased

• The current market value of a share is €1 and the company want to give Alison shares

• They are considering KEEP options

• Limits:

• €100,000 in 2018

• €250,000 in total between 2018, 2019 and 2020

• Max is 50% by remuneration so €25,000 is max for Alison

• If they grant her options not exceeding €25,000 and meet the other conditions then exempt at exercise and subject to CGT at sale


KEEP

Example – Dimensions – What if?

• Dimensions Limited was involved in architectural activities

• Alison decides she can only work part-time and reduces her hours to 25 per week

• The option price of a share at grant is set at €0.80 rather than market value of €1

• The company grants her options of €50,000 in 2018

• Patrick and Alison start a relationship and get married before she has exercised her options

• Dimensions Limited sets up a new subsidiary to allow the business to branch out into a new area. It owns all of the ordinary share capital but some preference shares are held by Enterprise Ireland

If any of the above occur Alison’s options will not be qualifying options and therefore would be subject to income tax (including USC and employee PRSI) on exercise


KEEP: Comparison to UK Enterprise Management Incentive Scheme (“EMI”)

Shares must be in the employer companyShare must be in the parent company (employer company can be a subsidiary provided trading)

Employee must work either 25 hours per week or 75% of their working time and cannot hold more than 30% of the company

Employee must be fulltime and work at least 30 hours per week and cannot hold more than 15% of the company

UK permanent establishment (can be incorporated outside of EEA)

Irish/EEA incorporated and either Irish resident or if EEA resident has a branch/agency in Ireland

Entrepreneurial relief rules relaxed for EMI options. • Qualifies where the option was granted at least 12 months

before disposal and in the 12 month period prior to disposal the individual is an employee/ director

• Where qualifies pays 10% CGT rate up to Stg£10m (lifetime limit)

No relaxation of entrepreneurial relief.• must hold min. 5% of the shares in the company, have

held the shares for 3 years, and have been a director or employee for 3 years (50% working time)

• Where qualifies pays 10% CGT rate up to €1m (lifetime limit)

3 year limit of Stg£250KAnnual limit of €100K subject to max of 50% of remuneration and a 3 year limit of €250K

KEEP EMI


Year End Housekeeping

Carmel Marnane


P35 Review and Submission

Year-End Housekeeping 2017

Review Areas

Termination Payments

Mobile Employees

Equity

BIKs

Expenses

New Payroll Components

• P35 – 23 February 2018 deadline

• New P35 layout

− Share based remuneration & taxable benefits to be shown separately

• Ensure Monthly P30s have been remitted/catch up in December P30

• 90% paid on P30s – balancing payment subject to interest from 14 January 2018

• Less than 90% on P30s - balancing payment subject to interest from 31 July 2017

• Interest calculated at daily rate of 0.0274% (10% p.a.)

• P60s – 23 February 2018 deadline


• Perform review pre P35 deadline – 23 February 2018

• PAYE Dispensation Applications

• Change in circumstances

• Shadow Payroll (Inbound Assignees)

• Travel and Subsistence relief

• Taxable assignment benefits e.g. home country benefits

• Foreign pensions – tax relief

• RSU’s – workdays apportionment in year

• Real Time Foreign Tax Credit through payroll on RSUs – 31 March 2018

• SARP – Employer Form – 23 February 2018

Mobility Payroll Review



• Outbound Payroll (Outbound Assignees)

• PAYE Exclusion Orders

− Non-Resident?

• Year-end reconciliation of Hypothetical Tax withholding

• Host Country Benefits

Mobility Payroll Review



Share Schemes Reporting 2017


Equity Planning Deadline for 2017 Form Format

Unapproved Share Options (including most ESPP Plans) – watch Cross border issues

31 March 2018 Form RSS1 Electronically via ROS

Approved SAYE Plans 31 March 2018 Form SRSO1 Paper

Approved Profit Sharing Scheme (“APPS”) 31 March 2018 Form ESS1 Paper

Employee Share Ownership Trust 31 March 2018 Form ESOT1 Paper

NB: Penalties / Withdrawal of approval


• Minor and irregular non-cash gifts/awards/expenses

• Less administration for payroll

• Written application to Revenue on or before 31 December 2017

• Payment by the P35 “paper” deadline – 15 February 2018

• Gross-Up required

• Higher tax rate or review by Individual

• Increased scrutiny by Revenue due to popularity

PAYE Settlement Agreement (“PSA”) 2017



• There are a number of steps involved:

• Data upload

• Running the Wizard rules: Allocation of expenditure into pre-determined taxable and non taxable categories based on allocated search terms

• Review of initial categorisation and customisation for increased accuracy

• Delivery of reports for audit trail and management purposes

• Delivery of the PSA computation

PSA Wizard – How does it work?



• PSA Wizard managed service

• License the PSA Wizard for use internally

• Factors which may influence choice

• Internal resource and expertise available

• Amount of internal time spent categorising data

• Is the organisation over paying in any areas?

• Assessment of the value of the benefits

PSA Wizard – What are the benefits and options?



• PSA Wizard can be used for PAYE Healthchecks also

• General expenses review for multi-years

• Accounts Payable / General Ledger review for multi-years

• Robust tool – tailored for Irish market


PSA Wizard – Other uses

Don’t leave your year-end housekeeping to the last minute:

- Can technology help you?

- Mobility is challenging and time consuming.


Brexit & Immigration Update

Ellen O’LearyRoisin Fitzpatrick


Brexit: Key Milestones

29Art. 50 Notification is issuedNo Turning Back !

22Theresa Maysets out a proposed 2 yearTransitionalDeal to end the negotiationdeadlock

23UK elects For Brexit

8UK GeneralElection-vote of confidence is not returned – 8 seats short of a majority

19/20EU Council Summit

29EU agrees its NegotiatingGuidelines

22/23EU summitBrexit clearly not centre stage

Ju

ne

May

Sep

tem

ber

24David CameronDeparts No.10

13Theresa May is Elected PM

Ju

ly

March

Ap

ril

22NegotiationsOpen

Ju

ne

Ju

ly

Octo

ber

19NegotiationsBegin: 3 pillars announced

March 2019

UK to Exit

the EU

October

2018

Target date

for

Agreement

of exit

terms

UK & EU citizens rights The “Divorce Settlement” The Irish Border

Decem

ber

8Deal ReachedFollowing negotiationsPhase 1 complete


Brexit: Preparing for a new direction – Cross Sector Impact Dimensions

Short Term

Manage and respond to

the immediate uncertainty

Long Term

Future proof the business

for the ultimate

disruptions

Provide clear communication internally and

externally on Brexit

Activate a Brexit

taskforce

Form sectorial

groups tackle industry wide

issues

Conduct scenario impact assessments to

understand the potential impact of Brexit

Improve internal and external co-ordination in

preparation for a response to

Brexit

Movement of People

Market Access

Market opportunity


Brexit: Preparing for a new direction – a phased approach

1 Aug to 31 Oct 2017 1 Nov 2017 to 28 Feb 2018 1 Mar 2018 to 31 Mar 2019 31 Mar 2019 onwards

High level reviewDemographic review of labour

landscape and provision of high level Mobility and Reward

considerations to facilitate initial business discussions and associated key timelines, activities and resource

requirements.

DesignCountry deep-dive review and

scenario planning across all areas of Mobility and Reward in order for the organisation to take key contingency planning decisions, based upon relevant internal and

external factors.

ImplementationPreparation of key

documentation, communications and training materials to embed chosen contingency plan, once

outcome of internal and external factors,

e.g. Brexit negotiations, are known.

Business as usualOngoing adhoc advice to drive

continuous improvement within the “new” business as usual. Monitoring new policies

are operating effectively in post-Brexit environment.


Brexit: Preparing for a new direction – key activities

Mobility Reward

Cost Modelling

Employee tax costs-income tax and social security

Availability of “inpatriate” regimes in host countries (e.g. Ireland, France, The Netherlands)

Wealth taxes, estate taxes

Remuneration – are local requirements the same, more strict, or more permissive?

Impact on current performance conditions and targets

Impact of strategic considerations

Share grants/offer to EU employees by UK companies and vice versa

Impact of a material decrease in share price for some companies

Impact of post-Brexit corporate structure


Employer Considerations – Short Term Actions

Post Brexit – Immigration Issues

High level Review of Workforce

EU nationals in UK and vice versa

Communications strategy

Permit expiry

1Regulatory Impacts

Data Flows and Data Centres

Consider future recruitment drives/assignments

Monitor anticipated requirements

Additional compliance costs

2 3


Obligation in Ireland

Immigration into Ireland: Post Brexit

Local HiresAssignment

Business Travel



Immigration points to consider

Business Visitors: an employee that travels in and out for short periods for business purposes but not carrying out productive work

Do they require a Visa to enter the country?

-Visa Required nationals require an entry visa

Must consider tax implications

Do they require a visa to enter?

- EEA/UK – No

- Non-EEA (Non-Visa): No

- Non-EEA (Visa): Yes

Usual Activities?

- Business meetings

- Client training

- Team trainings

Are they here for Business Purposes?

- Cannot carry out productive work

Duration:

- Max time is 90 days per visit

- Will often get less than 90 days per visit

Is Entry guaranteed?

No, it is at the discretion of the immigration official

https://www.djei.ie/en/What-We-Do/Jobs-Workplace-and-Skills/Employment-Permits/Employment-Permit-Eligibility/Highly-Skilled-Eligible-Occupations-List/


Commonly asked questions

Dependant Family Members of Local Hires and Assignments

1

Can They Enter?

• EU or UK nationals: can enter

• Non-EEA nationals – but not visa required: Can enter

• Non-EEA Nationals – visa required: Require an entry visa

2

Can They Reside?

• Married (civil marriage Certificate): Yes

• Civil partner (same sex): Yes

• Long term partner: Yes but must apply for Defacto Immigration Permission

3

Can They Work?

• Spouse is EEA national: Yes

• Spouse is non-EEA national: No –must apply for employment permit


Obligation in Ireland

Posted Workers

Post work obligation

Carrying out services in Ireland On temporary assignments

Employee employed in other EU company?


Specific Irish Immigration Issues post Brexit

Romania

Hungary

Greece

Cyprus

Ukraine

Lithuania

Croatia

Moldova

Serb. Mont.

Germany

SwitzerlandSlovenia

Gibraltar

AustriaLux. Slovakia

Sweden

FinlandNorway

France

Spain

Poland

Italy

Belarus

United KingdomLatvia

Ireland

Bulgaria

Estonia

Portugal

Denmark

Andorra

Netherlands

Belgium Czech Rep.

Albania

Bosnia Herz.

Macedonia

Liechtenstein

Iceland

Syria

Kuwait

Qatar

Guam

Palau

Micronesia

Christmas Is.

Wake I.

Marshall Is.

Maldives

Russia

China

Australia

India

Iran

Kazakhstan

Mongolia

Saudi Arabia

Turkey

Iraq

Pakistan

Myanmar

Afghanistan

Uzbekistan

Turkmenistan

ThailandYemen

Japan

Oman Laos

Vietnam

Nepal

Kyrgyzstan

Azerbaijan

Tajikistan

New Zealand

Papua New Guinea

Jordan

North Korea

Indonesia

Malaysia

Bangladesh

South Korea

Bhutan

Sri Lanka

Taiwan

New Caledonia

Philippines

Solomon Is.

Vanuatu

Israel

U.A.E.

Bahrain

Lebanon

Georgia

Armenia

East Timor

Cambodia

Benin

Congo

Liberia

Canary Is.

Gabon

Togo

Rwanda

Cape Verde

Seychelles

Algeria

North Sudan

Libya

Mali

Chad

Niger

Egypt

Angola

Dem. Rep. Congo

Ethiopia

South Africa

Nigeria

Namibia

Mauritania

Zambia

Tanzania

Kenya

Somalia

Botswana

Mozambique

Morocco

Madagascar

Cameroon

Zimbabwe

Ghana

Guinea

Tunisia

Uganda

Cote d'Ivoire

Senegal

Burkina Faso

Western Sahara

Eritrea

Malawi

Swaziland

Lesotho

Cen. Afr. Rep.

Sierra Leone

Guinea-Bissau

The Gambia

Equat. Guinea

Burundi

Djibouti

Comoros

Falkland Is.

Suriname

Brazil

Argentina

Peru

Chile

Bolivia

Colombia

Venezuela

Paraguay

Uruguay

Ecuador

Guyana

French Guiana

Trinidad & Tobago

Samoa

French Polynesia

Cook Is.

Galapagos Is.

Honduras

Nicaragua

The Bahamas

Hawaii

Bermuda

Midway Is.

Canada

United States

Mexico

Cuba

Panama

Haiti Puerto Rico

Dominican Rep.

Guatemala

Belize

El Salvador

Costa Rica

Greenland

South Sudan

Post Brexit

Common Travel Area

Schengen Area

Visa Waiver Schemes


•Change in contact details

Name Change: Department of Business, Enterprise & Innovation

•Work Permission

•Entry Visa

•EU Treaty Rights

Processing Times

•As of 11 December 2017 the previous registration certificate (GNIB card) has been phased out and replaced by the new Irish Residence Permit (IRP)

Irish Residence Permit – from GNIB

2017 Updates

Immigration Regime in Ireland


Immigration technology


Immigration Technology

Dashboards

About Me

GlobalAdvantage


Pre Travel Assessment Tool

Enter in planned journeys and receive a live immigration assessment.

Establish risk or liability before the booking is made.

Validation of travel to reduce and manage risk.

Prepare for a hard Brexit.

Scenario plan to identify your future business model and the implications for your mobility, reward and immigration strategies.


PAYE Modernisation

Jackie Coughlan – Deloitte Sinead Sweeney– Revenue


PAYE ModernisationDeloitte

17th January 2018


Background & Design Principles


Why modernise PAYE?

Changing nature of:

Employments

Payroll

Information and communications technology

Expectations


PAYE Modernisation

Seamless integration into payroll

Minimize employer cost to comply

Abolition of P30s, P45s, P46s, P60, End of Year

Returns

Right tax paid on current due dates

Time savings

Simplified online services

Maximise use of entitlements

Automatic end of year review

Real time accurate data

Transparency

Statutory in-year employer return

Making compliance easier

Accurate up to date income details

Reduced customer contacts

Timely targeted interventions


High Level Design and Process Flows


Seamless integration of reporting into the payroll process

Employees to be paid

Get latest Revenue Payroll Instructions

Perform Calculations Finalise

Bank File / Cheque

Payslips

Revenue Report

Money in Bank / Hand

Payslips

Pay and Deduction in

PS


Monthly / Quarterly

Abolition of P30s, P45s, P46s, P60, End of Year Returns

P30

Statement issued to employer each month with total tax due based on submissions.

Statement deemed as return if no corrections made by return due date.

Employer payment made in line with current payment dates.

Debt management for underpayments in year.

In year interventions based on risk analysis of reporting.

Revenue Report

Revenue Report

Revenue Report

Revenue Report

Total Tax DueAggregate of all

reports

Pay Online



P45 and P46s

• New employees set up in payroll and Revenue Payroll Instruction requested will commence the employment.

• Payroll submissions by employers will include commencement and cessation dates.

• Employees can manage their employment record via the Jobs and Pensions service.

Employees to be Paid (Start and End

Date)

Get latest Revenue Payroll Instructions

Perform Calculations Finalise

Bank File / Cheque

Payslips

Revenue Report

Manage Jobs and Pensions Record

Accept Revenue’s division of credits

and bands



P60s

During the year employee can view up to date pay and deductions on PAYE Services

Once December returned on record (14th of Jan) employee can see final pay and deductions for that employment on PAYE Services

PAYE ServicesTotal Pay and Deductions

Year

Revenue ReportRevenue ReportRevenue ReportRevenue Report

Revenue ReportRevenue Report


Monthly / Quarterly


End of Year Returns

December statement available in early January.

Statement deemed as return if no corrections made by return due date.

Debt management for underpayments.

Revenue Report

Revenue Report

Revenue Report

Revenue Report

Total Tax DueAggregate of all

reports

Pay Online Revenue Report

Total Tax DueAggregate last

month / quarterPay Online


Legislative Framework – Finance Act 2017


Legislation – Finance Act 2017

The legislation governing the changes include:

Revenue Payroll Notification (RPN)

Employer payroll submissions

Monthly statement issued by Revenue – deemed a return

Power to vary payment dates

Technology failure


External Stakeholder Engagement


Operation of Payroll

It is clear from the consultation to date that for some employers the focus on the end of year reporting may have contributed to in year payroll processing practices that are not fully in line with PAYE regulations.

The real time reporting regime will make these visible and such processes will need to change.

The proposed move of PAYE reporting from the current yearly basis to a real time basis is a fundamental change, in both philosophy and practical application, for Revenue and employers and brings significant challenges for both parties.


Corrections

While it is recognised that errors in payroll will occur, every effort should be made to ensure that submissions to Revenue are accurate and timely.

Employees must be easily able to reconcile their payslips with the data submitted to Revenue on their behalf.

All data received, including corrections and the timing of submissions, will feed into Revenue’s risk analysis systems.


Employer Key Challenges

For employers the introduction of real time reporting will necessitate changes in their current salary payment practices which are based on an end of year reporting obligation.

Employers will need to focus on the quality and accuracy of the data they will provide to Revenue on each pay day.

Employees will have full visibility of all data employers report to Revenue in real time on their behalf which if not accurate will lead to increased customer contacts for both employers in the first instance and possibly also for Revenue.


Stakeholder Engagement September 2017 to April 2018


Stakeholder Engagement - 2017

OctoberSeptember

2 External Stakeholder

Update

3 Webinar Thesaurus

Conference

11 Deloitte Client Event

November

3 Dept. of Education and

Education Bodies

December

4 Webinar Thesaurus

Conference

17 Deloitte Client Event

24 Webinar Thesaurus

Conference

26 Irish Agresso User Group

Workshop

27 Workplace Relations

Commission

1 IBEC Webinar4 External Stakeholder

Update

12 Dublin Bus

13 INTO Briefing

18 PWC Briefing

27 Bus Eireann

13 CPA

25 PSDA Workshop

29 BDO Client Information

Session

6 SAP Technical Meeting

13 PSDA Workshop

6 SFA

12 IFA

5-13 IPASS Briefing x 7

8 CPA Webinar 5 ITI ROS Workshop

6 External Stakeholder

Update

6-23 IPASS Briefing x

18

8 Taking Care of Business

Seminar

13 PAS

20 Agent Briefing Dublin

21 Agent Briefing Galway

22 Agent Briefing Cork

28 ITI – Making Tax

Digital

29 Educampus

7 PSDA

6 TALC Collection

19 State Examinations

23 Dept. of Education

Seminar

14 ETB


Stakeholder Engagement - 2018

January February March

28 Whitney Moore Client

Event

14 PSDA

April

18 PSDA

11 PSPA

24 PWC Client Event

24 PAYE Modernisation

Thesaurus Webinar


Thesaurus Webinar

9 IPASS briefing (Cork)

11 IPASS briefing (Dublin)

16 Deloitte (Cork)

17 Deloitte (Limerick)

31 National Manufacturing

Conf

15 CPA (Cork)

9 CPA (Dublin)


Thesaurus Webinar


Thesaurus Webinar

16 IPASS briefing

(Galway)

25 PSDA

7 PSDA

28 PSDA


Preparing for PAYE Modernisation


List of Employees

Revenue will be requesting all employers to submit an employee list at some point in 2018 (probably starting in June) – this will contain a list of employees currently working for the employer. The objective of the exercise is to get RPN’s for 2019 correct from the start of the year.

This will then be followed up with a Revenue matching exercise.


Getting Ready

Have you the right Personal Public Service (PPS) number for all your employees?

Have you registered your employees with Revenue?

Have you an up-to-date tax credit certificate for all your employees?

Have you completed the P45 process for any employees who have stopped working for you?

Have you adequate controls in place to ensure that benefits/notional pay are being accurately calculated during the year?

Are you aware of your duties as an employer at the end of the year?


Next Steps


Information

Regular updates on revenue.ie

Monthly external stakeholder update meetings

Questions\feedback to [email protected]

mailto:[email protected]


Conclusion


Year End Filings

Immigration

Business Travellers

Revenue Audits

PAYE Modernisation

KEEP scheme

Brexit

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