Treatment of Foreign Sourced Employment Income
1. PAYE and foreign employments
With effect from 1 January 2006, as regards the income of a foreign employment, it will be necessary to distinguish:
- that part of the income attributable to the performance in the State of duties of such employment, and
- that part of the income attributable to the performance outside the State of duties of such employment.
As regards the income at a, irrespective of the residence or domicile position of the employee, such income is now chargeable to Irish tax and within the scope of the PAYE system of deductions at source.
As regards the income at b, whilst such income may be chargeable to Irish tax in the hands of the employee, it is not within the scope of the PAYE system of deductions at source.
2. Further Information - Statement of Practice
More detailed information on the tax treatment of foreign sourced employment income is contained
in Statement of Practice 
SP - IT/3/07 (PDF, 430KB). In particular matters such as the release for employers from the obligation to operate the Irish PAYE system in certain circumstances for Temporary Assignees, Pension Contributions, Pay Related Social Insurance and Health Contributions, Exchange Rates and miscellaneous other issues are addressed.
