Directors’ Fees - Guidance Published
06 January 2012
Revenue have clarified that remuneration paid to a partner of a legal or accountancy firm (who is a solicitor or accountant), for the exercise of the office of a director, can be paid without the application of PAYE where certain conditions are met. The conditions to apply from 1 January 2012 are set out in their recent Tax Briefing.
Notwithstanding the above practice, Revenue note that a director of an Irish incorporated company holds an Irish public office, the remuneration arising from which is liable to deduction of tax at source through the PAYE system. Further guidance on the taxation of directors’ remuneration is provided in Tax Briefing 06/2011.