Irish Revenue update on COVID-19

Irish Revenue have issued a welcome update announcing measures that are being introduced to assist businesses that are experiencing cash flow issues as a result of COVID-19. Revenue have said that they appreciate that difficulties may arise for businesses in making tax payments, and have therefore issued the following advice:
 
Information for SMEs

• Tax returns should continue to be submitted to Revenue on time
• Interest on late payments of tax is suspended for January/February VAT and both February and March PAYE (Employers) liabilities
• Debt enforcement activity has been suspended until further notice
• Current tax clearance status will remain in place for all business over the coming months

Information for subcontractors

• The Relevant Contracts Tax (RCT) rate review scheduled to take place in March 2020 has been suspended. The review assesses the compliance position of a subcontractor to determine whether their RCT deduction rate should be 0%, 20% or 35%. The upcoming review has been suspended as a review may result in a subcontractor’s RCT deduction rate increasing due to changes in their compliance
• Revenue also wishes to remind subcontractors and agents that "self-reviews" may be carried out on ROS to check if a lower RCT deduction rate should apply.

Information on importing goods

• Critical pharmaceutical products and medicines will be given a customs "green routing" to facilitate uninterrupted importation and supply

Businesses, other than SMEs, who are experiencing cash flow or trading difficulties have been advised to contact the Collector-General’s office or engage directly with their branch contacts

Revenue have stated that they will continue to monitor the situation and will issue further guidance for businesses when required and in advance of the March/April VAT return deadline and other future deadlines.

For additional information on any tax matters, please contact a member of our tax team. We are here to help.