Taxes Consolidation Act 1997 section 985D

PAYE: employee of non-resident employer etc

Section 985D makes the Irish-resident person who benefits from an employee's services responsible for operating PAYE where the employee's non-resident employer or its intermediary fails to do so.

• Where an employee works in Ireland for a "relevant person" but is employed and paid by a non-resident employer or intermediary, and PAYE is not operated on those payments, the relevant person must step in and operate PAYE
• The amount on which the relevant person must operate PAYE is the actual payment made to the employee, or the grossed-up amount if the payment was received after deduction of tax
• The rule also applies to notional payments such as benefits in kind that the non-resident employer is treated as having made
• A payment is made through an intermediary where it is made by someone acting on behalf of and at the expense of the employer (or a connected person), or by trustees holding property for a class of persons that includes the employee