This podcast was recorded 18 August 2022

Kim Doyle, Tax Director with Grant Thornton is joined by Jane Quirke Tax Director in our Irish Employer Solutions team, and Lærke Hesselholt Head of Global Mobility Services and International Tax Partner Denmark to discuss employment tax considerations for construction companies.


Tax Developments

Tax Strategy Group Papers

During August the Tax Strategy Group published papers on various options for tax policy changes for Budget 2023. The papers cover the economic and fiscal context within which the taxation system operates following the recent pandemic and in light of the current cost of living increases, and future challenges. Key proposals include income tax indexation (adjustment of tax credits and income tax rate bands in line with inflation and/or wage growth), and a potential third rate of income tax. Other papers cover climate action initiatives, corporation tax, VAT and capital taxes.

You will find our full commentary on the key proposals and what they would mean for taxpayers in our special bulletin published on our website here.


Revenue Guidance on Interest Limitation Rules (ILR)

This recently published guidance has undergone extensive consultation with key stakeholders, and addresses a number of the uncertainties that were inherent in the legislation which was included in Finance Act 2021.  These rules are fundamental change to how companies’ taxable profits are calculated.  The guidance from Revenue is a ‘relatively’ readable explanation of the rules.

In brief, ILR introduces a restriction on the interest deductibility of corporate entities up to a limit of 30% of a taxpayer's taxable earnings before interest, tax, depreciation, and amortisation (“EBITDA”).

The ILR applies to accounting period commencing on or after 1 January 2022.

We have a specialist ILR team focusing on the implementation of these new rules and the impact they have on our client’s taxes. 


Share schemes and employees’ obligations

If you are an employer who operates a share based schemes you should have recently received correspondence from Revenue requesting that you provide certain information to your employees, involved in the share scheme, regarding their tax obligations.  The notice includes a Q&A and information for employees on how to meet their tax return and payment obligations.


Global mobility and employer solutions

Laerke, Jane and Kim discussed the following:

  • The growth of the data centre market in Europe and the significant increase in the number of Irish construction companies entering the European market in recent times.
  • The main current construction projects in Denmark.
  • The key tax Danish tax considerations for Irish construction companies operating in Denmark
  • Irish employment tax issues to consider for companies that send their Irish employees to work in Denmark.
  • The key pitfalls from an Irish employment tax perspective for Irish construction companies sending their employees to work abroad.
  • The employment law issues Irish construction companies face in Denmark.
  • Key tax recommendations to Irish construction companies operating in Denmark.


On our next episode of Tax Time, Kim will be joined by Peter Vale to chat about all things Budget 2023.