Accounting period: 1 January 2019 – 31 December 2019
A fee of €10,000 is declared and paid to the director in March 2020. A payroll submission is filed in March 2020. This includes the details of the director’s salary and emoluments for that period, including the €10,000. The payment date that is reported on the submission is the date the payment was made to the director.
The PAYE system calculates tax due on the payments received by a director or employee in a year of assessment. Proprietary directors however are assessed to income tax in respect of the amount actually earned in a year of assessment.
The €10,000 must be declared by the proprietary director in the 2019 Income Tax return, the year it was earned.