Dáil Éireann Debate, Thursday - 12 October 2023
15. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will give an update on the work that is being carried out by his Department, with other Government Departments and State agencies, to find solutions for those who live in the North of Ireland and work remotely for southern-based companies; and if he will make a statement on the matter. [44395/23]
Amharc ar fhreagraThe Government is committed to facilitating remote and flexible working in a way which maximises economic, social and environmental benefits.
The expansion of remote and hybrid working in recent years has significant potential to help create a more inclusive labour market, to widen access to talent for employers and to improve regional balance in the economy, including the Border region.
I am aware, however, that the growth of remote and hybrid working has introduced a new context for cross border workers and for employers based in the State employing - or seeking to employ - workers residing outside the State, particularly in relation to taxation.
While the current position does not preclude an Irish employer from allowing an employee to work remotely, such an arrangement may result in implications for the employer and the employee from a tax perspective.
It is important to emphasise that the State cannot move unilaterally on this issue and that consideration must be given to International Tax Law, Double Taxation agreements and any changes are subject to international negotiation. Clearly, these are matters that rest primarily with the Minister for Finance.
My Department is nevertheless actively engaged with colleagues across Government and other public bodies bilaterally and through the Remote Work Interdepartmental Group and other fora to address this challenge and in this context, I would highlight the following:
- Agencies under the auspices of my Department are engaged with their client companies, and with the relevant state bodies on matters relating to cross-border remote working.
- My Department is continuing to engage with the Department of Finance to obtain better data on the nature and extent of cross-border working. The Department of Finance has commissioned the ESRI to undertake research into the prevalence of cross-border working, including remote and hybrid working, with this research currently underway.
- I understand that Revenue is continuing to look at ways to minimise the administrative burden of cross-border working for workers and employers.
- More broadly, the Department of Finance is actively engaging in international discussions on the policy implications of cross-border working. These discussions remain at a preliminary stage.
- The Labour Employer Economic Forum, LEEF, Shared Island Working Group, which brings together Government, employers and trade unions is scheduled to meet on 31st October to discuss the policy challenges posed by cross-border remote working. Participants will include my own Department, the Department of the Taoiseach, the Department of Finance, Revenue and the Department of Social Protection.
My Department will monitor and assess any developments very closely, taking into account the cross-border nature of many people’s lives on the island of Ireland and the significant role that cross-border working plays in the all-island economy.
