Budget 2023 introduce a number of welcome measures which are likely to benefit Irish employees – including international assignees.
The specific impact of the Budget’s measures will depend on each taxpayer’s particular set of circumstances. However, in most instances, we expect that an employee’s Irish tax burden will reduce as a result of these changes, which should help employees to some extent with the current cost-of-living crisis.
In the case of tax equalised/protected employees on assignment in Ireland, these changes should reduce the cost of these assignments to the employer.
Given the impact of these changes to the operation of Irish payroll/shadow payroll, these changes should be communicated to relevant stakeholders as soon as possible, to help ensure that payroll processes and software can be updated in a timely fashion.
In the case of the update to Small Benefit Exemption, employers may wish to factor this increase into their reward strategy/policy for 2022.