IRISH REVENUE UPDATED GUIDANCE ON PAYMENTS ON REDUNDANCY OR RETIREMENT

The Irish Revenue has updated their guidance on the tax treatment of lump sum payments on a redundancy or a retirement.  Such lump sum payments may be exempt from tax or may qualify for some relief from tax.

In general, all payments made by employers to employees and directors are regarded as "Pay" for tax purposes and employers must operate PAYE on such payments.

Lump sum payments on a redundancy or a retirement, however, qualify for special tax treatment - they may be exempt from tax or may qualify for some relief from tax.

Please click here for the updated guidance.