Global Mobility Taxes

U.S. Taxes, One, Big, Beautiful Bill, State and Federal Taxes

The One Big Beautiful Bill Act, which was passed on 4th July 2025, made sweeping updates to the U.S. tax code and will extend a number of provisions from the 2017 Tax Cuts and Jobs Act, that were due to expire. This legislation creates new reporting requirements and amends certain eligibility thresholds.  Up to $25,000 in tip income is now deductible.  Many of the provisions will bring change in 2026 and include:

• Taxpayers claiming the standard deduction will now be able to deduct up to $1,000 in charitable contributions in their annual tax return. This figure will rise to $2,000 for couples filing a joint tax return.  Therefore, the new charitable contribution deduction for non-itemizers for cash contributions is up to $1,000 for individuals and $2,000 for married couples who file their tax returns jointly.

• For taxpayers who itemize deductions rather than claiming the standard deduction, their 2026 charitable deduction will be limited to the amount that exceeds 0.5% of their 2026 adjusted gross income (AGI).

• The annual limit of certain K-12 expenses increases to $20,000. The definition has been expanded to include other expenses, for example, books, fees, tutoring, etc. Please be aware, however, that K-12 expenses do not qualify for state income tax purposes in certain U.S. states.

• There will be a new limit on itemized deductions for taxpayers in the 37% tax bracket. Effectively, this means that for every dollar of itemized deduction, the maximum tax benefit available will only be 35 cents. For 2026, the 37% bracket kicks in where the taxable income exceeds $640,600 for single filers and heads of households, $768,700 for married couples filing jointly and at $384,350 for married couples filing separately.

• For 2026, the state and local taxes (SALT) deduction is capped at $40,400. There is a slight increase in the phase-out range, which begins when the modified adjusted gross income (MAGI) is $505,000. Once MAGI surpasses $606,333, the deduction cap will be $10,000. Therefore, regardless of the MAGI, the SALT deduction will not fall under $10,000.

• Commencing 4th July 2026, it will be possible for employers to contribute up to $2,500 to the new Trump Accounts for Children. This amount will be excluded from the employee’s gross income.

• With regard to the Federal Estate & Gift Tax Exemption, the lifetime federal estate and gift tax exclusion amount has risen to $15 million per individual in 2026. For married couples, a combined amount of $30 million applies.

• Catch-up contributions allow those participants aged from 50 years to contribute additional money to their retirement accounts while those individuals, making additional contributions who are aged between 60 and 63 years come within the “super catch-up” definition. Higher-income participants in 401(k), 403(b) and 457(b) retirement plans are required to make any catch-up contributions as after-tax Roth contributions. This requirement applies to participants with 2025 FICA wages exceeding $150,000. In summary, from 1^st January 2026, catch-up and super catch-up contributions for certain high-paid participants must be made on an after-tax Roth basis instead of pre-tax basis.  This rule does not apply to SIMPLE IRAs or SEP IRAs.

Please be aware that 15^th April 2026 is the tax filing deadline for your individual federal income tax return.  It is also the deadline date for most of the state tax returns, however, there are some exceptions so please make sure you check this out.

For further information, please click: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions

If you are seeking comprehensive U.S. tax advice or looking to regularise your U.S. tax affairs, and wish to deal with a U.S. Tax Advisor, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

PAYE Exclusion Orders. Employers Tax. Global Mobility. Payroll Taxes

Today, 11th August 2025, Revenue have amended their Tax and Duty Manual Part 42-04-01 – PAYE Exclusion Orders.

This guidance material provides details of the new PAYE Exclusion Order application portal, which may be accessed through MyAccount or ROS.  This new application system will allow for faster processing times.

If you require assistance with payroll and in particular with PAYE Exclusion Orders, please contact us at queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

VAT Advice. Tax Services for Staff Secondment. Global Mobility Tax. Foreign Companies. Employer Taxes and Payroll

Revenue eBrief 66/18, published on 23rd April 2018, contained guidance on the VAT treatment of staff secondments to companies established in Ireland from related foreign companies.  These guidance notes confirm that staff secondments are subject to VAT at the standard rate, being 23%. This applies even where both companies are connected and members of an international group.  Revenue, however, have provided a concession whereby VAT will not be charged on payments in relation to the seconded staff provided that correct Irish PAYE and PRSI (payroll taxes) have been operated on these payments.

This concessionary treatment will only apply in situations where the staff members are seconded from a company established outside Ireland but which is part of the same corporate group as the recipient company and where the staff are seconded to an Irish established company or an Irish branch of a foreign company. In addition, the Irish company to which the employee is seconded must exercise control over the performance of his/her duties or the secondee must effectively have managerial responsibility for the operation of the Irish company or Irish branch. Finally, the PAYE and PRSI liabilities relating to the payments to the seconded employee must be paid over to the Irish Revenue in a timely manner.

For further information, please click:  https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0662018.aspx

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so.. This information should not be acted upon without full and comprehensive, specialist professional tax advice.

Irish Employment Taxes. Payroll Taxes. Employees and Employers Taxes

It’s very difficult to keep up to date with all the amendments to the Irish tax system so here is a summary of some of the employment tax changes to be mindful of in 2018:

1. Annual Membership Fees paid to a professional body (Revenue eBrief 04/18 published on 9^th January 2018)

The updated Revenue guidance notes allow an employee to claim a deduction for professional membership fees only in circumstances where:

1. There is a statutory requirement for that employee to be a member of a specific professional organisation or body or to hold a practicing certificate in order to carry out the duties of his/her employment or
2. In the absence of that professional membership or practicing certificate the individual cannot legally fulfill the full duties of his/her employment.

Where the employer pays the membership fee on the employee’s behalf and either of the above two conditions apply then no Benefit-in-Kind is deemed to have arisen.  Subsequently no payroll taxes will arise.

We would advise all employers to ensure the payment of professional membership fees on behalf of employees can be supported in the event of a Revenue Audit.

For further information, please follow the link: https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0042018.aspx

2. Increase in Employer’s Pay Related Social Insurance from 10.75% to 10.85% from 1^st January 2018.

 3. Benefit-in-Kind Exemption of Electric Vehicles for 2018. 

Finance Act 2017 introduced this exemption for electric vehicles which were available for private use for employees during the 2018 tax year.  It is not clear whether or not this scheme will be extended into 2019 which may result in a low uptake in purchasing electric vehicles by employers.

The exemption applies to cars and vans deriving their power from an electric motor.

It does not apply to hybrid vehicles.

4. PAYE Modernisation or Real Time Reporting

From 1^st January 2019 all employers will be required to accurately provide PAYE data to Revenue on a Real Time basis.

This effectively means:

• Revenue will be able to automatically review employees’ payroll information and immediately identify any discrepancies and errors.
• The PAYE information submitted to Revenue must be 100% correct.  In other words, the opportunity to amend errors at the end of the year has been eliminated.

For further information, please follow the link:

https://www.revenue.ie/en/tax-professionals/ebrief/2017/no-892017.aspx

We would advise all employers to take the time, sooner rather than later, to ensure their payroll processes will be adequate to handle the increased obligations of the Real Time Reporting.

Here is a list of other relevant Revenue eBriefs:

Home Carer Tax Credit – Revenue eBrief No. 009/18 (29th January 2018) https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0092018.aspx

Change in Basis of Assessment – Schedule E – Revenue eBrief No. 127/17 (29th December 2017) https://www.revenue.ie/en/tax-professionals/ebrief/2017/no-1272017.aspx

Taxation of payments to craft apprentices by Education and Training Boards –Revenue eBrief No. 126/17 (29 December 2017)

Benefit-in-Kind on use of Company Vans – Revenue eBrief No. 124/17 (28^th December 2017) https://www.revenue.ie/en/tax-professionals/ebrief/2017/no-1242017.aspx

Exemption from Income Tax in respect of certain payments made under employment law – Revenue eBrief No. 118/17 (20th December 2017) https://www.revenue.ie/en/tax-professionals/ebrief/2017/no-1182017.aspx

PAYE Services: Tax and Duty Manual Updates – Revenue eBrief No. 111/17 (01 December 2017) https://www.revenue.ie/en/tax-professionals/ebrief/2017/no-1112017.aspx

Amendments to the Employment and Investment Incentive on 2^nd November 2017 – Revenue eBrief No. 99/17 (02 November 2017)
 https://www.revenue.ie/en/tax-professionals/ebrief/2017/no-992017.aspx

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.