CXC are ideally placed to be the accounting partner for contractors working abroad.

The CXC service will ensure that the contractors are tax compliant, pay social insurance in their home country (as this is where they will receive benefits) and have an attractive take home pay after taxes and fees.

For Contracts of Six Months or less

As a contractor working abroad you will be taxed in Ireland you will not have to pay any tax in the foreign country. You will be tax resident in Ireland and will be taxed and paid in accordance with Irish taxation legislation. You will receive full details and documentation on all payments should you need to satisfy the taxation authorities here

The contractor will :

• Be an employee of an Irish company
• Sent to the foreign country to undertake work on behalf of the Irish company.

The Irish company will pay all:

• Expenses of travel
• Subsistence to the foreign country at standard civil service rates or at the actual costs if higher in Ireland

Contracts of Six Months to Twelve Months Duration

These employees will also:

• Have an E101
• Pay their social welfare insurance in Ireland
• Receive travel and subsistence expenses in accordance with revenue Guidelines.

Tax Residency
As you will be in a foreign country for more than 183 days you will be deemed as tax resident of the foreign country and are obliged to pay taxes in that country. It is the obligation of the employer (that will be the Irish company ) to calculate and deduct taxes in accordance with the local tax legislation from the salary of all work undertaken in the particular country and pay the taxes to the relevant revenue authorities.

The Irish Company is registered as a foreign employer, and as such will receive a tax deduction card for you and complete all returns in accordance with the foreign country’s revenue requirements.

E101 Form
All contractors will need to apply for an E101 certificate under EU legislation to ensure they continue to pay social insurance in Ireland and hence do not have to undertake any payments in the foreign country where they are working. They will be entitled to do this as they will be employed by an Irish company. As contractors will be likely to return to Ireland after completion of their contracts and are unlikely to claim unemployment benefit or other benefits in the foreign country it is equitable (as provided for by the EU) that contractors continue to pay their social insurance in Ireland.

As you will be resident for taxation abroad the revenue authorities in Ireland will be informed and CXC will apply for a Tax Exclusion Certificate for the contractor in Ireland. This will ensure that the contractor will not have to pay tax in both countries.  

European Health Insurance Card
CXC will also apply for an EHIC (European Health Insurance Card) for you prior to you going abroad. This will ensure that you are entitled to any medical requirements and are only required to pay for this on the same basis as an individual who is a permanent resident of the country they are working in.