[World Tax News] Irish Govt. extends ‘Zero Tax’ for Ukrainian citizens and more
- Blog|International Tax|
- 3 Min Read
- By Taxmann
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- Last Updated on 21 February, 2023
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World Tax News provides a weekly snippet of tax news from around the globe. Here is a glimpse of the tax happening in the world this week.
- Irish Govt. extends ‘Zero Tax’ forUkrainian citizens working in Ireland for Ukrainian employers
- Singapore releases budget for the year 2023, increases tax rates for non-residents from 22% to 24%
1. Irish Govt. extends ‘Zero Tax’ forUkrainian citizens working in Ireland for Ukrainian employers
The Irish Revenue has released eBrief No. 028/23, which pertains to the extension of favourable tax treatment offered to Ukrainian citizens who work remotely in Ireland for Ukrainian employers. Originally applicable for the 2022 tax year, this concessional tax treatment has now been extended for the tax year 2023.
In April 2022, Revenue published eBrief No. 090/22, which provides preferential measures to Ukrainians who arrived in the country due to the conflict in their homeland and kept their employment with a Ukrainian employer while working remotely from Ireland.
Under the concession, Ukrainian employees working in Ireland for Ukrainian employers were exempt from Irish income tax and Universal Social Charge (USC) on their Ukrainian employment income earned while working in the country. Also, these employers were not obligated to operate the Pay As You Earn (PAYE) system on such income. The concession only pertained to the employment income paid to the Irish-based employees by their Ukrainian employer.
In addition, the Revenue did not consider the presence of these employees, directors, service providers, or agents for the purpose of Corporation Taxation, provided the companyis based in Ukraine.
As the conflict in Ukraine persists, along with the humanitarian crisis it has created, the Revenue has affirmed that the preferential measures described in eBrief No. 090/22 will remain in effect for the 2023 tax year, subject to the eligibility requirements outlined therein. Those who benefit from these concessions should ensure that they maintain documentation to verify that they meet the necessary criteria.
Source: eBrief No. 028/23
2. Singapore releases budget for the year 2023, increases tax rates for non-residents from 22% to 24%
On February 13, 2023, the Inland Revenue Authority of Singapore (IRAS) revised its directives regarding Individual Income Tax rates, indicating a rise in the highest marginal personal income tax rates applicable for the year of assessment (YA) 2024 (income year 2023).
The updated rates include a new maximum rate of 23% on income amounting to Singapore Dollars (SGD) 500,000 and a further 24% on income exceeding SGD 1 million, resulting in the following tax brackets:
| Income Range | Tax Rates |
| up to SGD 20,000 | 0% |
| SGD 20,001 to 30,000 | 2% |
| SGD 30,001 to 40,000 | 3.5% |
| SGD 40,001 to 80,000 | 7% |
| SGD 80,001 to 120,000 | 11.5% |
| SGD 120,001 to 160,000 | 15% |
| SGD 160,001 to 200,000 | 18% |
| SGD 200,001 to 240,000 | 19% |
| SGD 240,001 to 280,000 | 19.5% |
| SGD 280,001 to 320,000 | 20% |
| SGD 320,001 to 500,000 | 22% |
| SGD 500,001 to 1,000,000 | 23% |
| over SGD 1,000,000 | 24% |
In addition to new rates, the Individual Income Tax rate for non-resident individuals, excluding employment income and specific income taxable at lower withholding rates, has been raised from 22% to 24%.
The objective is to ensure consistency between the non-resident income tax rate and the highest marginal income tax rate for resident individuals. Meanwhile, non-resident employment income is subject to a fixed rate of 15% or the progressive resident tax rates, whichever results in a higher tax amount.
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