finance bill 2015 deloitte


Exemption of expenses for non-resident NEDs welcome

Finance Bill 2015

Irish NEDs potentially treated differently

No provisions to address concept of “normal place of work” contained in the Bill

Section 6 of Finance Bill 2015 has introduced a new section of legislation which exempts expenses of travel and subsistence incurred by a non-resident non-executive director solely for the purpose of attending meetings in his or her capacity as a director.

Daryl Hanberry, Tax Partner, Deloitte commented: “This is a positive change for FDI investment into Ireland and provides certainty and a practical solution for companies who use foreign-based directors in order to bring additional expertise, insight and corporate governance to their organisation.

It does create an anomaly that Irish non-executive directors will potentially be treated differently to non-resident directors – for example - an individual travelling from Galway to Dublin is taxable on such expenses whereas an individual travelling from San Francisco to the same meeting would not be taxable on similar type of expenses. It will be interesting to see if this is reviewed as the Finance Bill progresses through the various legislative stages.

In addition, while this change comes into operation on 1 January 2016, there is uncertainty whether companies should follow this approach for 2015, given the clear aim and intention of the new legislation.

There were no provisions in the Finance Bill dealing with the concept of the “normal place of work” and an opportunity was therefore missed to address growing confusion in this area due to new ways of doing business, such as remote working.

Overall though, this is a positive step for Ireland Inc and will be welcomed particularly by the FDI community but also by the many large Irish companies who utilise the expertise of foreign based non-executive directors.”

For full details of Deloitte’s commentary and analysis on Finance Bill 2015, please visit or follow @DeloitteIreland on twitter.

For Further Information Please Contact

Olwyn Flanagan
083 173 7585

Claire Quinn
087 977 7783

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The information contained in this press release is correct at the time of going to press.

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