21 February 2023
Employment Tax
Impact: High
Summary
On 7 February 2023, the Irish Revenue announced an extension of concessional tax treatments for certain Ukrainians working in Ireland for Ukrainian employers.
The Detail
On 14 April 2022, the Irish Revenue issued eBrief No. 090/22, which introduced tax concessions for Ukrainians who came to Ireland as a result of the ongoing war in Ukraine, and continued to be employed by their Ukrainian employer while performing duties of their employment remotely from Ireland.
Where the above circumstances apply, the concession provided that:
The concession applies solely to employment income paid to Irish-based employees by their Ukrainian employers.
The concession also disregards the presence of these employees in Ireland for Corporation Tax purposes, where the employee would have continued to be present in Ukraine but for the war there.
This concession was due to expire on 31 December 2022. However, given the continuation of the war in Ukraine, Revenue has confirmed that the concession will continue to apply for the2023 Irish tax year, subject to the above conditions continuing to be met.
Any individual or relevant entity that avails of these concessional treatments should continue to retain evidence to support compliance with the qualifying conditions.
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