Revenue eBrief No. 079/21 – Credit in respect of tax deducted from emoluments of certain directors and employees

Revenue eBrief No. 079/21 – Credit in respect of tax deducted from emoluments of certain directors and employees

Revenue confirmed that a credit for tax deducted from the emoluments of a proprietary director (or connected persons of the director) will not be available, where the company has warehoused its PAYE tax debt. Revenue will not consider tax to be paid for the purposes of section 997A TCA 1997 when the tax is warehoused, accordingly a credit will not be available to the director in calculating their 2020 income tax liability.

However, if the director or connected person is herself/himself availing of income tax/preliminary tax warehousing (because they are also subject to self-assessment) under the new section 1080B TCA, all liabilities including the unpaid Schedule E liabilities can be warehoused.

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