Ireland Outlines Tax Withholding Exclusion for Certain Nonresidents

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By Jared Mondschein

Jan. 27 — Employers are exempt from deducting taxes for nonresident employees who are recruited abroad and exercise all their duties abroad, the Irish Office of the Revenue Commissioners said on Jan. 16 (eBrief No. 003/2015).

The commissioner's office said that employers are released from the obligation to make the appropriate deductions under the Pay As You Earn system for nonresident employees in certain circumstances.

The exemption, or Pay As You Earn Exclusion Order, is applicable if the employee:

• is not a resident of Ireland for tax purposes;

• has been recruited abroad;

• carries out all duties of employment abroad;

• is not a director of the employer; and

• is not responsible for taxes in Ireland.


Other categories that Pay As You Earn Exclusion Orders apply to include certain resident employees and office holders, directors of Irish incorporated companies and nonresident pensioners.

To contact the reporter on this story: Jared Mondschein at

To contact the editor responsible for this story: Michael Baer at

The eBrief No. 003/2015 on Pay As You Earn Exclusion Orders can be found at

More information on payroll issues in Ireland can be found in the Ireland country primer.

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