Dáil Éireann Debate, Thursday - 8 February 2024
43. Deputy Ruairí Ó Murchú asked the Minister for Enterprise, Trade and Employment if he will give and update on the work that is being done by his Department, with other Government Departments and State agencies; to find solutions for those who live in the North and work remotely for southern-based companies; and if he will make a statement on the matter. [5718/24]
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, of the concerns raised by the Deputy both today and last October in relation to the some of the challenges posed by the growth of remote and hybrid working 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.
It is important to clarify that workers who live in Northern Ireland and work in the State are not precluded from working from home. The availability of remote working is primarily a matter between the employer and the employee.
An Irish private sector employer may allow an employee to work remotely in Northern Ireland, however, such arrangements may result in implications for the employer from a UK tax perspective. Therefore, I understand that the potential tax implications that may arise from such arrangements are outside the scope of the Minister for Finance’s direct remit and that of his Department.
More generally, it is worth reiterating that the State cannot move unilaterally on this issue since cross-border remote working has potential tax implications not only for this country but also on an international level. Consideration must be given to International Tax Law, Double Taxation agreements, and any changes are subject to international negotiation- matters that rest primarily with the Minister for Finance.
I understand however that discussions in relation to global mobility and the tax policy implications for cross border workers have already started at both the EU and the OECD and that the Department of Finance is fully engaging with all the relevant stakeholders and is contributing to the policy discussions on the issue.
In addition, my own Department continues to actively engage with colleagues across Government and other public bodies both bilaterally and through the Remote Work Interdepartmental Group and other fora to address this challenge. In this context, I would highlight the following:
- Agencies under the auspices of my Department are continuing to engage with their client companies, and with the relevant state bodies on matters relating to cross-border working, including remote and hybrid 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. This research is well advanced at present.
- I understand that Revenue is continuing to look at ways to minimise the administrative burden of cross-border working and recently introduced changes to alleviate the burden for non-resident employees of Irish private sector employers who exercise duties both inside and outside the State.
- The functioning of the all-island labour market is a priority for the Labour Employer Economic Forum (LEEF) Shared Island Working Group. The Shared Island Working is chaired by the Department of the Taoiseach and brings together Government, employer representatives and trade unions.
- The LEEF Shared Island Working Group met last October to discuss the policy challenges posed by cross-border remote working. Participants included my own Department, the Department of the Taoiseach, the Department of Finance, Revenue and the Department of Social Protection along with other stakeholders.
- The LEEF Shared Island Working Group has also recently commissioned research focused on the current conditions of the island of Ireland labour market, and challenges and opportunities for effective operation for workers and businesses across the island. It is intended that this research will be published in Q2 2024 and will help inform any future policy in this area.
My Department will continue to 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.
