Taxation of Directors Remuneration

The Revenue are targeting companies in relation to payroll deductions from directors’ remuneration.  The position of a director in an Irish incorporated company is regarded as a public office. PAYE/USC and PRSI should be deducted by a company when paying any remuneration to directors.  The Revenue are requesting the following:

  • Details of payments made to directors.
  • Details of payments made to companies which are connected by common directors and an explanation of service provided.
  • Contracts with directors and contracts with companies that are connected by common directors.

The tax exposure in circumstances where payments are made to directors not subject to PAYE / PRSI / USC, is that the Revenue would "gross up" those payments and request that the relevant taxes be paid.

Contact Mark Butler or Maura Duffy for further information.

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