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foreign based Directors salary

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  • 29-05-2006 9:51am
    #1
    skorn
    Closed Accounts Posts: 142 ✭✭


    We have a private limited company. Initially both directors were based in Ireland.
    Now 1 director is based in South Africa.
    We haven't started paying each other a salary but want to start doing so now.

    Will there be any deductions to be made from the salary, to be paid to the South Africa based director? PAYE / PRSI ?
    Or do we just pay the full amount out, and then all tax deductions are done in SA?
    Are there any Revenue forms that need to be filed for this? Does Revenue need to be informed?


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    #2
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    Generally money earned here is taxed her but as he has left the country, there are some tests that need to be passed in order for him to qualify as a tax resident. Your best bet would be to ask an accountant on here, try Kluivert or Chump.


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    #3
    NaasMan
    Closed Accounts Posts: 24 ✭NaasMan


    Any directors fees paid to a Director of an Irish company will always be liable to Irish PAYE and PRSI. This is because a directorship is classed as an office (based on case law). If the individual is still doing work for the Irish company, I would suggest that they resign as a Director and become an employee. You can then apply for a PAYE exclusion order if they have broken Irish tax residence, applying you to pay them without deduction of Irish PAYE/PRSI. This income may however still be subject to SA tax.


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