Business

Tax treatment of Ukrainians working remotely in Ireland for companies at home set to change

Concessions will end in January 2025, says Revenue

Ukrainians working remotely here for their employers at home have not been subject to the same tax laws as other remote workers for non-Irish employers. Photograph: Joe Giddens/PA Wire

Anne Lucey
Tue Apr 2 2024 - 05:00

The tax treatment of Ukrainians who are working remotely here is set to change, according to Revenue.

Ukrainians fleeing war following Russia’s invasion in February 2022 but working remotely here for their employers at home, along with their employers in Ukraine, have not been subject to the same tax laws as other remote workers for non-Irish employers.

However, this is set to change with Revenue notifying accountants and other tax professionals here of the changes from the beginning of next year.

“These concessional treatments will cease with effect from January 1st, 2025. From this date, the Irish-based employee and the Ukrainian employer will be required to comply with the Irish tax requirements arising from the exercise of the duties of the Ukrainian employment in Ireland,” Revenue stated.

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The concessions will continue to apply for the tax year 2024, subject to the qualifying conditions being met, Revenue confirmed.

Since April 2022 Ukrainian beneficiaries of temporary protection who are living here and working for Ukrainian employers have enjoyed a number of concessions. These include not being liable to Irish income tax and the universal social charge on Ukrainian employment income.

In addition, Ukrainian employers are not required to operate the PAYE system on such employment income.

Revenue also disregarded the presence of those workers for corporation tax purposes in respect of any company resident in Ukraine where the employee, director, service provider or agent would have continued to be present in Ukraine but for the war there.

Revenue, however, advised any individual or relevant entity availing of the concessional treatments to retain evidence to support compliance with the qualifying conditions.

Normally,income from a non-Irish employment attributable to the performance in Ireland of the duties of that employment is chargeable here to income tax and USC and is within the scope of the PAYE system of deduction of income tax at source.

The concessions were extended for the tax year 2023 and 2024. However, this will change from January 2025.

The Central Statistics Office does not keep records of Ukrainians working remotely here.

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