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Ireland’s tax concession for Ukrainian citizens working remotely in Ireland for Ukrainian employers

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On 14 April 2022, Revenue announced a concession in relation to the Irish tax treatment of Ukrainian citizens who continue to be employed by their Ukrainian employer and who perform their duties remotely from Ireland.

We have outlined a summary of Revenue’s treatment of the Irish tax position of Ukrainian citizens who work remotely in Ireland below. 

Liability of Ukrainian employment income to Irish income tax and concessional treatment

Regardless of the tax residence position of the employee or the employer, income from a non-Irish employment attributable to the performance in Ireland of the duties of that employment is chargeable in Ireland to income tax and the Universal Social Charge (USC) and is within the scope of the PAYE system of deduction of income tax at source.

However, by way of concession, Revenue will treat –

  • these Irish-based employees of Ukrainian employers as not being liable to Irish income tax & USC on Ukrainian employment income that is attributable to the performance of duties in Ireland, and
  • the Ukrainian employers as not being required to operate the PAYE system on such employment income.

The concession applies solely to employment income that is paid to the Irish-based employees by their Ukrainian employer.

This concessionary treatment will apply for the tax year 2022 where:

  • the employee would have performed his/her employment duties in Ukraine but for the war there, and
  • the employee remains subject to Ukrainian income tax on his/her employment income.

Corporation tax

Similarly, due to the ongoing war in Ukraine, an employee, director, service provider or agent may have come to Ireland because of the war and may, as a result, have an unavoidably extended presence in the state.

Revenue will disregard such presence in Ireland for corporation tax purposes where the employee, director, service provider or agent would have continued to be present in Ukraine if it wasn’t for the war there. This concessionary treatment will apply for the tax year 2022.

Record keeping

As respects any individual or relevant entity that avails of the concessional treatments set out above, any documents or other evidence - such as a record with the individual’s date of arrival in the State – showing that it was due to the war in Ukraine that the individual came to Ireland and performed their work or duties here, should be kept.  

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