Government measures in key jurisdictions 5th edition - Flipbook - Page 67
Ireland
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Irish Revenue have also introduced a COVID Restrictions Support Scheme (“CRSS”) aimed at
businesses impacted by Covid-19 restrictions, such that the business is required to prohibit or
considerably restrict customers from accessing its premises. Businesses can make a claim to
Revenue for a payment equal to 10% of their average weekly turnover in 2019 up to Ä20,000 and
5% thereafter, subject to a maximum weekly payment of Ä5,000, for each week that it is affected
by the restrictions. As at 18 February 2021, 20,200 businesses have registered for CRSS.
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The standard VAT rate in Ireland will be reduced from 23% to 21% from 1 September 2020 with the
rate reverting back to 23% from 1 March 2021.
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SMEs experiencing cash flow and/or trading difficulties can defer payment of March/April
2020 and May/June 2020 VAT returns (due on 23 May 2020 and 23 July 2020, respectively)
and April, May and June 2020 payroll taxes. Non-SMEs are being encouraged to talk to
Revenue with a view to similar deferments if experiencing similar cash flow issues. All debt
enforcement activity in respect of SMEs is suspended until further notice.
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Irish Revenue will warehouse unpaid VAT, payroll taxes, self-assessed income tax amounts
and TWSS overpayments arising from the Covid-19 crisis. These tax debts will be parked for
12 months after a business resumes normal trading. A lower interest rate of 3% (normally
10%) will apply on the repayment of such debts after this period. The arrangements will ringfence the debts for the period during which the business is unable to trade or is trading at
significantly reduced levels and includes a 2 month period after the business returns to
normal trading levels. No interest or debt enforcement will occur with respect to the
warehoused debts. The legislation enacting this measure is now in place. As at 13 January
2021, approximately 70,000 businesses are availing of the scheme.
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Revenue has suspended tax audit and other compliance intervention activity on taxpayers'
premises until further notice.
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Revenue has indicated that it will continue to prioritise the approval and processing of tax
repayments and refunds to taxpayers.
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For income tax purposes, an individual will not be regarded as resident in Ireland where they
spend additional days in Ireland due to the pandemic.
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For corporation tax purposes, an individual will not be regarded as resident in or outside of
Ireland for a company of which they are an employee, director, service provider or agent
where they spend additional days in or outside of Ireland due to the pandemic. See more
information here.
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Revenue have subsequently updated the above concession to exclude anyone who travelled
to Ireland on or after 6 May 2020 as the occurrence must not have been reasonably
foreseen and would not be considered a force majeure circumstance from this date.
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Corporation tax returns for accounting periods ending 30 June 2019 onwards (i.e. due by 23
March 2020 onwards) will not be subject to a late filing surcharge until further notice and
late filing due to Covid-19 will not result in the usual restriction of reliefs, such as loss and
group relief. In addition, various other tax filing deadlines have been extended, in particular
in respect of employer returns regarding certain benefits supplied to employees (such as
employee share schemes).
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Irish Revenue have introduced a temporary acceleration of corporation tax loss relief for
accounting periods affected by Covid-19. It allows companies to estimate their trading
losses for certain accounting periods and to carry back up to 50% of those losses against
chargeable profits of the preceding accounting period on an accelerated basis.
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Close companies with accounting periods ending from 30 September 2018 onwards are
required to make distributions by 31 March 2020 onwards to avoid a close company
surcharge. These companies can apply to extend the 18-month distribution period by 9
months where the company is affected by Covid-19 and needs to retain cash to support the
business.
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