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What Employers In Ireland Need to Know about Tax Treatment of Ukraine Citizens 

Desislava Serbezova
Desislava Serbezova
Apr 28, 2022 • 1 mins
Global Tax
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According to the latest figures from the Department of Justice, almost 17,000 people have now fled Ukraine and arrived in Ireland since the start of the war. It is a number that we can expect to see rise over the coming months as the situation in Ukraine continues to deteriorate. While many of those arriving are children, there is a percentage who will resume their work while here.
As a result, it is important that payroll teams understand how to correctly tax these individuals. According to Revenue, here are the latest guidelines for the treatment of Ukrainian citizens working remotely in Ireland.

Is Ukrainian employment income subject to Irish income tax and concessional treatment?

Yes. Regardless of the tax residence position of the employee or the employer, income from non-Irish employment deriving from the performance of employment duties in Ireland is subject to income tax and the Universal Social Charge (USC) and is within the scope of the Pay As You Earn (PAYE) system.
However, Revenue will
  • treat these Irish-based employees of Ukrainian employers as not being liable to Irish income tax and USC on Ukrainian employment income that is attributable to the performance of duties in the State, and
  • the Ukrainian employers as not being required to operate the PAYE system on such employment income
The concession applies only to employment income that is paid to the Irish-based employees by their Ukrainian employer.

How long will these rules apply?

These concessionary treatments will apply for the tax year 2022 where:
In relation to Ukrainian employment income -
  • the employee would have performed their duties of employment in Ukraine but for the war there and
  • the employee remains subject to Ukrainian income tax on their employment income for the year.
It is important that employers and employees keep documents or other evidence - such as a record with the individual’s date of arrival in the Republic of Ireland, which shows that the war in Ukraine is why they are in Ireland, as Revenue may request such records at any time.
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