Taxes Consolidation Act 1997 section 985E

PAYE: employment not wholly exercised in State

Section 985E provides a mechanism for determining the proportion of an employee's income that is subject to PAYE where that employee works partly in Ireland and partly abroad, and the taxable portion is not readily ascertainable.

• Where an employee works both in and outside the State, only the income attributable to duties performed in Ireland is chargeable to income tax under Schedule E and subject to PAYE.
• If the taxable proportion is uncertain, the employer (or an appropriate person acting for the employer) may apply to Revenue for a direction specifying the proportion of income on which PAYE should be operated.
• Where a direction is in place, the employer applies PAYE only to the proportion of each payment specified in the direction; where no direction is sought, PAYE must be operated on the entire payment.
• A direction may be withdrawn by Revenue on 30 days' notice, and any material change in circumstances will render an existing direction void.