Revenue will issue a PAYE exclusion order on application by an employer who is posting an employee abroad. PAYE exclusion order will be issued where the employee ceases to be liable to income tax in Ireland. The employer needs to send a letter to Revenue stating the length of time the employee will spend out of state. Revenue will then provide a letter authorising the employer to operate no PAYE on payments made to that employee. The PAYE exclusion order exempts the employee from paying PAYE and USC but PRSI liability will still arise for the employee and employer.
A PAYE exclusion order is in place as long as the employee remains non-resident subject to an expiry date on the exclusion order.
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