Kim discusses the latest in tax.  Joanne shares her insights into the impact of the Covid-19 pandemic on employment work practices as well as the implications of Brexit on employee mobility.

Tax developments

10% stamp duty on cumulative purchase of 10 or more houses

Legislation introducing a new higher stamp duty charge of 10% on the multiple purchase of residential houses was passed by the Irish government in May. The legislation, provides for a higher stamp duty rate of 10% to the purchase of 10 or more houses within a 12-month period, on or after 20 May 2021.   

A transition period of 3 months applies for the execution of contracts that have been entered into but not completed prior to commencement of the legislation. The legislation includes specific conditions to deal with purchases of houses prior to 20 May 2021 and also incremental house purchases. 

Apartment blocks are exempted from this higher 10% rate. Purchases of houses by Local Authorities, the Housing Agency, and Approved Housing Bodies are also excluded. 

New Employer Share Awards return and August deadline

Revenue confirmed that the new electronic form, known as the Employer's Share Awards (ESA) return will be available during June 2021.  This new electronic form is needed by employers who are required to report certain share based remuneration electronically to Revenue.  The deadline for the 2020 ESA return is 31 August 2021.

Research and Development Tax Relief – latest updates from Revenue

Revenue published the long–awaited updates to their Research and Development (R&D) guidelines covering the treatment of rental expenditure.  The updates also include information on the treatment of subsidies received under the Temporary Wage Subsidy Scheme (TWSS) and Employment Wage Subsidy Scheme (EWSS).

For more on the R&D tax regime tune into the January issue of Tax Time and you will hear James McMahon, Tax Director, insight into the R&D regime in Ireland.

Temporary Wage Subsidy Scheme tax liabilities and employers paying the tax on their behalf

Revenue have extended their Benefit in Kind (BIK) concession with respect to the payment of TWSS tax liabilities (income tax and USC) by employers on behalf of their employees, to the end of September 2021.  Revenue confirmed that this concession will also apply to payment of TWSS tax liabilities of employees who are self-assessed.  Proprietary directors will also be covered by the concession but only if the employer pays the TWSS tax liabilities of all employees in the company.

This means that Revenue will not apply the BIK rules to the payment of income tax and USC liabilities arising for employees as a result of the TWSS amount. Therefore, the employee will not be subject to an additional tax charge on the payment made by their employer. Certain conditions apply.

Global mobility and employer solutions

Joanne Sinnott, Associate Tax Director, discusses employment work practices and employee mobility as well as the key tax considerations for both employee and employers arising from remote working.

  • The main tax considerations for Irish employers and employees where employees are working remotely from a foreign jurisdiction.
  • Tax supports or concessions in place in respect of Covid-19 for Irish employers and employees.
  • Tax reliefs available for employees who are working from home.
  • The impact of Brexit on the tax and social security obligations for employers and employees in a global mobility and international remote working context.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.