Ruairi Ó Murchú (Louth, Sinn Fein)
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89. To ask the Minister for Enterprise, Trade and Employment if he will outline any engagement his Department has had with other Departments in relation to the tax implications for workers who live in the North and wish to work remotely for Southern-based companies and the tax implications for the firms who wish to recruit them; and if he will make a statement on the matter. [21791/23]

Simon Coveney (Cork South Central, Fine Gael)
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My Department is fully supportive of facilitating remote and flexible working practices, this commitment has been set out in the 2021 publication Making Remote Work: National Remote Work Strategy. An interdepartmental group within my Department has been responsible for implementation of the Strategy’s actions, including movements to incorporate the Right to Request remote work into legislation.

However, the taxation of cross-border workers is a much deeper issue and not only affects Ireland but has potential tax implications on an international level. It is a very complex matter, and the State cannot move unilaterally. Therefore, consideration must be given to International Tax Law, Double Taxation agreements and ongoing negotiations that are taking place between respective countries. It is important to clarify that my Department cannot make a final decision in such matters and ultimate responsibility lies with The Department of Finance and The Department of Foreign Affairs.

The current position does not preclude workers who reside in Northern Ireland and work for ROI based companies from availing of remote working. The availability of remote working is primarily a matter between the employer and the employee. A private sector employer, based in the ROI, may allow an employee to work remotely in Northern Ireland, however, such arrangements may result in implications for the employer from a UK tax perspective.

As a first step, my Department is committed to engaging with the Department of Finance and other relevant stakeholders on the following issues:

1. Obtain Better Data – there is a general acceptance that data in relation to the nature and extent of cross-border working could be improved. The ESRI has been commissioned to undertake a research project in this area. It is understood that this work is in progress by the ESRI.

2. Minimise Administrative Burden – Revenue are currently looking at ways to minimise and simplify the administrative burden insofar as possible.

3. International Discussions – the Department of Finance is actively engaging in any international discussions on the policy implications of cross-border working. The Department will also engage bilaterally with other jurisdictions as appropriate to the circumstances.

Discussions in this space are still in its preliminary stages, we expect that further engagements with the Department of Finance will commence following a more detailed examination of the above 3 issues by the various government Departments.