Publications

Employers can offer many different share schemes to their employees or directors, often as a way of rewarding employees and encouraging loyalty and participation in a tax efficient manner.

Ireland represents a strategic European base because of our pro-business, low corporate tax environment and skilled workforce. As a result of these and other factors, more than 1,600 multinational companies have chosen Ireland as their investment platform.

The European Commission has been revising the Securing Activity Framework of Enablers (SAFE) Directive, with intentions to implement the Directive in due course. The proposed policy carries a number of implications for tax intermediaries, which the Commission refers to as “enablers”.

A foreign employment tax obligation can arise from as little as an employee spending one day working in a foreign country. Such obligations should be considered from a very early stage given the high personal tax rates that apply across Europe and associated penalties for companies who fail to register for and operate payroll withholding taxes.

In recent years Ireland has become an epicentre for Foreign Direct Investment (FDI) for a number of reasons including connected world class research, pro-enterprise policy and an attractive tax regime.

SARP was first introduced in 2012 to encourage the relocation/assignment of key employees to Ireland. Where certain conditions are satisfied, 30% of taxable employment income over €75,000 will be disregarded for income tax purposes. Income which is disregarded for income tax purposes is not exempt from the Universal Social Charge (USC) or PRSI.

In recent years offshore fund investments have become increasingly popular with investors and their brokers. While they can be an attractive alternative to traditional investment options, investors should be aware of additional tax implications and reporting obligations.

Read our publications on EU mandatory disclosure requirement

Read our new article on PAYE Modernisation – FAQ for employees