Does Irish PAYE apply

@paddy199 I thought the same but @Dublin66 is suggesting that when the employee is non resident and none of the duties are carried out in Ireland PAYE does not apply and therefore an Exclusion Order is not required.

Looking at what Dublin66 referred to, it just means that Emergency Basis of Deduction doesn't apply - since Regulation 22 only deals with that. Not sure where that leaves the employer in terms of any other obligations under the Regulations though...

So the OPs friend would normally operate emergency tax but as it does not apply they don't have to deduct any income tax?

Is that right?

Yes Joe 90 that is correct. Reg 22 is the default position and apply emergency tax when you don't have a tax credit cert. However emergency tax does not need to be applied on the basis of reg 22(7) thus no requirement to deduct PAYE.

I would not automatically however extend this to USC and PRSI as different rules and I haven't worked through these.

If I had the option of applying for an exclusion order in advance I would. As has been mentioned above exclusion orders do exempt USC but only apply from the date of issue (and not application as I found out myself a number of years back).

Hello Folks, thanks again for all of your considered replies.

Obviously a tricky area.

@Joe90 I was specifically responding to the PAYE exclusion order query.

@Dublin 66 is absolutely correct in what he is saying. I got an exclusion order last year and it was dated the application date (I did fax it, maybe that made a difference).

If the company is paying the foreign employee from Ireland, Irish payroll taxes apply. Therefore you need a PAYE exclusion order.

It's only outside scope of Irish payroll taxes if paid outside of Ireland. The company may need to register in that company and return local payroll taxes.