Revenue have announced a relaxation of residency rules for Irish tax exiles. Normally, if an individual resides in Ireland for more than 183 days, they are liable to pay Irish taxes, but due to the extenuating circumstances of Covid-19, there will be temporary flexibility for people who are unable to leave Ireland.
Tax exiles, who are usually limited to spending only 183 days in Ireland, will be allowed to remain longer this year, without taxation consequences, if they can prove to Revenue they were forced to stay because of the coronavirus.
This means that if a contractor from the UK is working in Ireland and cannot return home as a result of Covid-19, they will not be liable to pay taxes in Ireland.
Revenue have stated that they consider the coronavirus to fall into the category of force majeure. This means that they realise that these are unforeseeable circumstances and completely outside of people’s control.