Revenue eBrief No. 056/23

14 March 2023

Double deduction of tax at source: credit through PAYE system for non-refundable foreign tax

Tax and Duty Manual Part 42-04-62 - Double deduction of tax at source: credit through PAYE system for non-refundable foreign tax - has been amended as follows:

  • Paragraph 2.1.1. has been amended to reflect updated practice with regard to Irish employment income which is subject to payroll withholding tax in non-DTA jurisdictions, specifically relating to the claiming of unilateral relief in such circumstances.
  • Paragraph 6 provides updated guidance on the funding of foreign payroll withholding tax liabilities which may arise when an Irish resident employee exercises duties abroad.
  • The examples in Appendices 1 and 2 have been updated.
  • The application form (Double Deduction 1) in Appendix 3 has been amended to request details of the intended departure and return dates to the State in respect of the assignment and also the expected work pattern of the employee between the two territories.