Temporary Wage Subsidy Scheme (TWSS) Tax

Temporary Wage Subsidy Scheme (TWSS) Tax

Temporary Wage Subsidy Scheme (TWSS) Tax

Revenue extends facility for Employers to pay employee’s TWSS Tax

 

The June deadline for employers wishing to pay their employee’s TWSS tax liability, without the imposition of a Benefit in Kind (BIK) charge, has been extended to the end of September 2021.  Revenue wrote to the Consultative Committee of Accountancy Bodies (CAB-I) confirming the extension of the BIK concession following consideration of the issue raised by the CCAB-I on foot of members’ feedback.

Revenue issued an eBrief confirming the concessional BIK treatment facilitating employers who wish to pay the 2020 income tax and Universal Social Charge (USC)  liabilities of their employees arising from the TWSS now applies until the end of September 2021.

Revenue also confirmed that the concession applies where an employer pays the tax and USC liabilities:

  • Of an employee who is a self-assessed taxpayer or, in jointly assessed cases, if the employee’s spouse is self-assessed; and
  • Of a proprietary director(s) in the company, provided the employer pays the TWSS related liabilities of all employees in the company.

The relevant pages of the Revenue website are updated to reflect this and provide further information on the offset of direct TWSS payments.

The CCAB-I wrote to Revenue in early March informing them of the feedback and Temporary Wage Subsidy Scheme (TWSS) issues raised by members in a survey conducted by Chartered Accountants Ireland, ACCA, CPA Ireland and CIMA.

2021 Extended Pay and File deadline for ROS customers

The 2021 extended ROS return filing and payment date for self-assessment income tax and capital acquisitions tax is Wednesday 17th November 2021.

Revenue confirmed that the due date of 31st October 2021 is extended to Wednesday 17th November 2021 for taxpayers who file their 2020 Form 11 and make the appropriate payment through Revenue’s Online System (ROS) for preliminary tax for 2021 along with the income tax balance due for 2020.

The due date for beneficiaries who received gifts or inheritances with valuation dates in the year ended 31st August 2021 and who make Capital Acquisitions Tax (CAT) return and the appropriate payment through ROS is also extended to Wednesday 17th November 2021.

To qualify for the extension, taxpayers must both pay and file through ROS.  Where only one of these actions is completed through ROS the extension does not apply and the required date to submit both returns and payments is no later than 31st October 2021.

New return for share-based remuneration

A new electronic form, the Employer’s Share Awards (ESA) return, is due to be launched by Revenue.  The form provides for the mandatory electronic reporting of certain share-based remuneration, as required under Finance Act 2020.  The form applies to tax the year 2020 and onwards.  The filing deadline for the 2020 return is 31st August 2021.

Section 8 of the Finance Act 2020 provides for the mandatory electronic reporting of certain share-based remuneration.  This includes restricted stock units (RSUs), restricted shares, convertible shares, forfeitable shares, discounted shares, and any other award with the cash equivalent of shares.

The new return will have a format very similar to the existing KEEP1, RSS1, and ESS1 electronic returns – a pre-formatted spreadsheet that can be uploaded through ROS.

While the filing deadline for the 2020 return is 31st August 2021 for subsequent years the reporting date of 31st March following the relevant tax year will apply.

 

    KEY FILING DATES – August 2021

 

TAX HEAD RETURN PERIOD PAYMENT &
FILING DATE
Dividend Withholding Tax DWT July 2021 14th August 2021
Professional Services Withholding Tax (PSWT) F30 July 2021 14th August 2021
PAYE/PRSI/USC/LPT Monthly Deductions July 2021 23rd August 2021
Corporation Tax Preliminary tax Accounting periods ending 30th September 2021 23rd August 2021
Corporation Tax Corporation Tax Return (Form CT1) Accounting periods ending 30th November 2020 23rd August 2021
Relevant Contracts Tax (RCT) RCT Monthly Return July 2021 23rd August 2021
Corporation Tax Returns of Third-Party Information (Form 46G) Accounting periods ending 30th November 2020 31st August 2021
Corporation Tax Close companies with undistributed profits Accounting periods ending 29th February 2020 31st August 2021

 

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