Thursday, 24 September 2020

Questions (98)

Thomas Pringle

Question:

98. Deputy Thomas Pringle asked the Minister for Finance if a series of matters raised in correspondence by a person (details supplied) will be given consideration; the steps that will be taken to alleviate the inability of cross-Border workers to work from home due to double taxation legislation; if steps will be taken to remove the double taxation rules to allow persons here working in the Northern Ireland a better work life balance (details supplied); and if he will make a statement on the matter. [26076/20]

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Written answers (Question to Finance)

I am advised by Revenue that Transborder Relief may apply in the case of an individual resident in the State but who commutes to his or her place of work outside the State. This relief is set out in section 825A of the Taxes Consolidation Act 1997.

The relief effectively removes the foreign employment income from a liability to Irish tax where foreign tax has been paid on that employment income. In simple terms, the effect of the measure is that Irish tax will only arise where the individual has income other than income from a foreign employment.

The relief applies subject to certain conditions, which includes the requirement that the duties of a qualifying employment are performed wholly outside the State in a country with which Ireland has a Double Taxation Agreement. There is an exception in respect of merely incidental duties which may be performed in the State.

In the context of the COVID-19 pandemic Revenue updated the guidance in respect of this relief, having regard to the unprecedented circumstances. The updated guidance confirms, where employees are required to work from home in the State due to COVID-19, such days spent working at home in the State will not preclude an individual from being entitled to claim this relief for 2020, provided all other conditions of the relief are met. The updated guidance for this relief and other COVID-19 measures are available on the COVID-19 hub of Revenue’s website - available here.