Taxes Consolidation Act 1997 section 57

Extension of charge to tax under Case III of Schedule D in certain circumstances

Section 57 ensures that expense payments and benefits in kind received by persons whose employment income is taxed under Schedule D Case III (foreign source income) are taxed in the same way as if that income were taxed under Schedule E.

• Where employment income arises outside Ireland and is taxed under Schedule D Case III, any associated expense payments or benefits in kind are brought into the tax charge on that employment income.
• The amount taxable is calculated as if the recipient's remuneration were chargeable under Schedule E, applying the same rules set out in Chapter 3 of Part 5 of the Act (the benefit in kind provisions).
• This ensures that employees of non-resident companies, whose pay arises outside Ireland, cannot avoid tax on perks and expense payments simply because their income is assessed under a different Schedule.
• An individual who is ordinarily resident but not tax-resident in Ireland may be exempt from tax on such foreign employment income under section 821.