Finance Act 2023 amends sections 128, 128B, 531AO, 959AB and 985A of the TCA 1997 so that the taxation of a gain realised on the exercise, assignment or release of a right to acquire shares or other assets is moved from self-assessment to the Pay As You Earn (PAYE) system. This treatment will apply to gains realised on or after 1 January 2024. As […]
PAYE PAYE is a method of tax deduction by which an employee’s income tax on remuneration is deducted and accounted for to the Revenue, by the employer. It also applies director’s fees, in which case, the company must deduct tax and account for it to the Revenue. PAYE also applies to pension payments and benefits in kind. The system also applies to PRSI and Universal […]
General Expenses paid, which are not the reimbursement of deductible expenses are taxable under Schedule E. Payments that are a reimbursement of actual deductible expenses are not taxable. Where payments are received on account of expenses, they may be deductible, provided that they were incurred in carrying out of the employment. Vouchers and proof should be obtained and retained for the purpose of justifying the […]
Termination Payments There has been generous tax treatment for different types of payments made on termination of employment. Subject to certain conditions, sums up to one half times final salary may be taken on retirement, from an approved pension scheme. See our guides on pensions. There is a complete exemption from tax in relation to payments paid on the injury disability or death in service […]
Employments Employment income is a separate category of income under tax law. The category covers income received from an employment and income received from an “office”. As with others categories of income dealt with in other chapters, there are special rules of computation and in relation to allowable deductions. Employment income is income from an employment, as opposed to income earned as an independent contractor. […]
Perks Employees are taxable on perquisites (perks) and benefits in kind received. They are treated in the same manner as other employment income and PAYE must be deducted. A perquisite is something provided by an employer that can be converted into monies relatively easily. This may include vouchers and such like. Its value must be included in PAYE deductions and is subject to income tax […]
Certain Benefits in Kind Certain benefits in kind outside the benefits in kind taxing legislation is exempt. This includes accommodation which is necessary for a particular business or employment; the provision of meals in a canteen provided for the staff generally; pensions, annuities, sums and benefits given on death, the retirement of a director or employee; certain benefits or facilities including travel pass, membership of […]