FX Gains or Losses?

The Irish economy generates foreign exchange (FX) flows of approximately €200Billion every year from the import and export of goods and services in addition to financial flows. Volatility in the FX markets is an ever present challenge to financial managers who are trying to minimise the impact that movements in foreign exchange rates can have on their core business. Adopting a proactive approach to managing FX risk will ensure that unforeseen developments in the financial markets do not erode trading margins or create negative surprises that can have a detrimental impact on the company’s performance. When it comes to managing FX risk it is not about beating the market or rolling the dice, it is about mitigating what is a very significant risk to your bottom line.

If we look at the EURUSD exchange rate over the last 18 months, we can see that an Irish company importing goods and paying for them in US dollars would have been doing so at a rate of €/$1.40 in May 2014. As recently as a few weeks ago, that same company would have been buying those same goods at a rate of €/$1.05, a move that represents a 25% increase in costs. Nobody knows where FX rates will be in the future but companies can take steps to manage or avoid these negative surprises or disadvantageous moves in the FX market.

Better FX rates mean that you will pay less for your foreign currency purchases or will generate more income from your foreign currency sales, these savings go straight to your bottom line.

Talk to Noone Casey to identify how best to manage your FX exposure.

Tax Clearance Certificates

From 1 January 2016 all applicants registered for tax who require a Tax Clearance Certificate should apply through the eTC system on ROS or myAccount.

The only exceptions to this are:

  1. Tax Clearance Certificates required for Standards in Public Office (SIPO) purposes,
  2. non-resident applicants who have no Tax Registration Number in this State,
  3. non e-enabled applicants,
  4. non-registered voluntary bodies.

Guidelines on using the new system are available on www.revenue.ie.

If you need any asistance in obtaining your Tax Clearance Certificate or in negotiating historic Revenue debt contact Anthony Casey or call  01 6766 476

Should overseas artists pay tax in Ireland?

Visiting artists earning income from performances in Ireland have a tax liability under Irish tax law which requires them to file a self-assessment return. However, because they are not tax resident in this country, there are practical difficulties in enforcing that liability. In other words they do not file returns and there is no pressure from the Revenue Commissioners to file these returns and pay this tax.

Construction Industry Update

Revenue has been very active in the construction industry in recent months, with a number of contractors receiving unannounced on-site visits from Revenue. Revenue are focusing on, proper operation of eRCT, HRI (Home Renovation Incentive) and VAT Reverse Charge Systems, classification of employees and subcontractors and the correct operation of PAYE.

From January 2016, there will be a new “Revenue Site Identifier Number” (SIN) mandatory field in the Contract Notification process in the eRCT system. Each contract will require a SIN when the Contract Notification process is being completed. The SIN is a system-generated identifying number which is applied to the location or locations where relevant operations are due to take place under a particular contract.

RENT A ROOM RELIEF NOT APPLICABLE TO AIRBNB

 

Income arising to an individual in respect of the letting, for residential purposes, of a room or rooms in his/her home, including income arising from the provision of meals or other services supplied in connection with the letting, is exempt from income tax, PRSI and USC where the income is below12,000. Revenue has clarified however that, income from the provision of accommodation to occasional visitors for short periods does not qualify for the relief as, the visitors use the accommodation as guest accommodation rather than for residential purposes.

If you think you may have a tax liability in this regards, speak to us today.

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