Workforce Payments Guide Ireland

Last updated: Dec 18, 2023

Currency
Euro (EUR)
Payroll Frequency
Monthly
Capital
Dublin
Fiscal Year
1 January - 31 December
Employer Taxes
8.80% to 11.05%
Central Bank
Central Bank of Ireland
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Corporate Income Tax  Annually  1 April (or 1 May if filed electronically)  Electronic transfer 
Individual Income Tax  Annually  1 April (or 1 May if filed electronically)  Electronic transfer 
VAT  Monthly  25 days after the taxable period  Electronic transfer 
Social Security (PRSI)  Each time the employee is paid  Each time the employee is paid  Electronic transfer 

Payments Coverage

Papaya Global fully support payments in Ireland

Contractor Payments

Papaya Global supports payments to contractors in Ireland. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency

Monthly

IBAN

IBAN Example Ireland

IE79BOFI900017375154

IBAN in print IE79 BOFI 9000 1737 5154
Country Code IE
Digit Code 79
Bank Code BOFI
Branch code 900017
Bank Account Number 375154

KYC

In Ireland, the Know Your Customer (KYC) process involves various steps and is placed under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended).

Companies registered in Ireland are required to provide proof of incorporation/registration, an up-to-date list of directors, and identification documents for the ultimate beneficial owners of the company.

Confirmed personal identification of at least one director is also needed, this includes recent utility bills, a passport, and a driver’s license. Companies are also required to disclose the employment of any politically exposed persons.

FinTechs doing business in Ireland but not incorporated in the country are subject to the same requirements. Despite Europe updating regulations to the 6th Anti-Money Laundering Directive, Ireland decided not to include this in national law, believing that the national law currently in place is equivalent, if not more comprehensive than 6AMLD.

The Data Protection Commission (DPC) has stated that investment firms are not obliged to collect Anti-Money Laundering (AML) KYC documentation. These entities should comply with the AML requirements when performing customer due diligence.

The DPC has also noted that the collection of KYC documentation from third-party purchasers should cease unless there is a proper legal justification. If such requests continue, they can be referred to the DPC by way of complaint. Solicitors have their own separate and independent KYC and AML requirements in relation to their clients, and should not be asked to retain data at the behest of the investment fund/lender, which could potentially breach General Data Protection Regulation (GDPR) regulations.

Banking Regulations

In Ireland, the specific banking regulations that impact cross-border workforce payments include:

  1. Part 9 (Financial Services: Settlement Finality) of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 This requires the operator of a relevant arrangement to notify the Central Bank of Ireland and the Minister of Finance when this section applies to the arrangement.
  2. The SSM Framework Regulation and the SSM Regulation establishes the framework for banking supervision in the EU and allocates responsibilities between the ECB and the Central Bank.
  3. Capital Requirements Regulation (EU) 575/2013 (the “CRR”) and Directive 2013/36/EU (“CRD IV”) govern authorization requirements, the supervisory framework, prudential rules, governance and reporting requirements, amongst other provisions.
  4. Anti-money laundering and conduct of business regulations: The Central Bank is the competent authority in Ireland for the monitoring and supervision of financial and banks’ compliance with their anti-money laundering and countering the financing of terrorism obligations, and for the development, implementation and supervision of financial conduct of business regulation for regulated firms.
  5. EMIR Regulation (EU) 648/2012 increases transparency in respect of derivatives by imposing requirements concerning reporting of derivative contracts, clearing derivatives subject to the mandatory clearing obligation, risk mitigation techniques for non-centrally cleared derivatives, and setting out requirements for central counterparties and trade repositories.
  6. The EU Cross Border Payments regulation requires the Bank of Ireland to provide customers with greater transparency on foreign exchange charges for certain card transactions in the European Economic Area (EEA).
  7. After the United Kingdom voted to leave the European Union in 2016, it was necessary for banks incorporated in the UK to migrate certain EU assets to their subsidiaries across the EU including Ireland to continue to serve EU clients.

Bank Account Opening

To open a company bank account in Ireland, you need to:

  1. Contact a local branch/office of your chosen provider to book an appointment or start the account opening process online by downloading a Business Account Application Form.
  2. Complete various forms such as Account Mandate forms, and authorization forms for online banking, debit and credit card usage based on your business requirements.

The required documents include:

  1. Proof of Identity and Address for one or more signatories on the account, one or more directors of the business, and all Beneficial Owners of a company.
  2. Business Ownership/Legal documents such as Certificate of Incorporation, Certificate of Registration of Business Name, a copy of the Partnership Agreement, your company’s Memorandum & Articles of Association, and proof that your company is registered with the Registration of Beneficial Ownership (RBO).
  3. Business Records such as recent bank statements, most recent set of certified accounts (if requiring credit facilities), and a business plan (if requiring credit facilities).

The timeframe for opening a business account is likely to vary depending on the complexity of your banking requirements and the business type (e.g. sole trader, partnership, limited company).

If you need credit facilities, it will take longer to process applications for credit facilities. It is important to start the process as early as possible.

Generally, the process can take from a day or two to 10 days, and in some cases, the bank account can be registered within 2 weeks of the company’s incorporation.

International Banks

The major foreign banks operating in Ireland include Bank of America, Wells Fargo, JP Morgan, Barclays Bank Ireland, Citibank Europe, Scotia Bank, HSBC, TD Securities, ING, LGT Bank Ireland, BNY Mellon, Credit Suisse, Bank of Montreal, Klarna Bank AB, bunq BV, Bank of China (Europe) S.A., Macquarie Bank Europe DAC, SMBC Bank EU AG, HSBC UK Bank plc, European Depositary Bank S.A., HSBC Continental Europe, and Goldman Sachs Bank Europe SE.

Local Major Banks

The major local banks operating in Ireland are Bank of Ireland, AIB Bank (Allied Irish Banks), Permanent TSB, and EBS (a subsidiary of Allied Irish Banks). 

Payment Tools

The B2C payment tools available in Ireland include:

  • Visa
  • Mastercard
  • American Express
  • Discover
  • PayPal
  • Apple Pay
  • Google Pay
  • 2Checkout
  • Opayo Ireland (formerly SagePay)
  • Realex (now known as Global Payments)
  • Stripe payment
  • Rapyd Payments
  • Adyen
  • Authorize.net
  • Checkout.com
  • Braintree
  • Skrill
  • Revolut
  • inai
  • Amazon Pay

Additionally, there are also options for card payments, contactless payments, person-to-person payments, pay-by-link (email or SMS) solutions, and mobile payment acceptance devices.

Cryptocurrency

It is possible to pay employees with cryptocurrencies in Ireland. For the purpose of calculating payroll taxes, the Euro value of the cryptocurrency at the time the payment is made to the employee is used.

All returns must be shown in Euro amounts and remittances made appropriately. The regular Corporation and Income Tax rules apply as usual, and there are no specific regulations for cryptocurrency transactions. VAT is due from suppliers of any goods or services sold in exchange for cryptocurrency, calculated on the Euro value of the cryptocurrency at the time of supply.

However, transactions from a business operating a cryptocurrency exchange are exempt from Irish VAT, and under Irish tax law, mining does not constitute economic activity for VAT purposes.

Detailed records of all cryptocurrency transactions must be kept. If an employee is provided crypto-assets free of charge or for a reduced amount, normal benefit-in-kind rules will apply. If an employee is given a right or option to acquire assets, which may include crypto-assets, the tax treatment is similar to the right or option to acquire share options.

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