Other Covid-19 Tax Admin Measures

In March 2020, the impact of the Covid-19 pandemic resulted in businesses closing their doors and many employees working remotely, where possible, to help maintain social distancing and suppress the transmission of the virus. Although necessary, these measures have severely affected businesses in the weeks and months that followed. A number of measures were introduced by the Government and the Revenue Commissioners to mitigate the negative impact of the Covid-19 restrictions on businesses, employees and the economy as a whole.

The Department of Business, Enterprise and Innovation has provided an overview of the financial supports, training and guidance to help businesses mitigate the impact of COVID-19 and return to work safely on their Government supports for COVID-19 impacted businesses webpage.

The Revenue Commissioners also created the COVID-19 information and advice for taxpayers and agents webpage providing information, guidance and advice to assist taxpayers, and their agents, experiencing a range of difficulties caused by the impacts of the COVID-19 pandemic.

On 23 July 2020, the Government announced the July Jobs Stimulus 2020, which provided for several measures to boost the economy and get people back to work. Legislation underpinning the tax measures announced in the July Jobs Stimulus, the Financial Provisions (Covid-19) (No. 2) Act 2020 was passed by Dáil Éireann and signed into law by the President on 1 August 2020. The Institute has collated the latest updates and links to information which members may find useful on the Institute’s July Jobs Stimulus 2020 webpage.

On 1 June 2021, the Government launched the Economic Recovery Plan 2021. The Plan sets out a new phase of supports for the next stage of the economic recovery after the COVID-19 pandemic. As part of the measures announced in the Economic Recovery Plan, the reduced 9% VAT rate applying on a temporary basis to Hospitality and Tourism related goods and services was extended until 1 September 2022.

On 22 June, the Government published the Finance (Covid-19 and Miscellaneous Provisions) Bill 2021 and section 6 of the Bill provides for the extension of the reduced 9% VAT rate for the tourism sector from 31 December 2021 to 31 August 2022. The 9% VAT rate applies to the supply of restaurant and catering services, guest and holiday accommodation and entertainment services, such as admissions to cinemas, theatres, museums, fairgrounds, amusement park and sporting facilities, and also to hairdressing and the sale of certain printed matter (e.g. brochures, maps and programmes).

The Finance (Covid-19 and Miscellaneous Provisions) Act 2021 was signed by the President of Ireland, Michael D. Higgins on 19 July 2021.

Irish Tax Institute Representations

The Institute is in ongoing engagement with Revenue on measures to help deal with cash-flow issues for businesses and on clarifications required on tax administration. Following our representations, Revenue updated their website and provided further clarity to the Institute on a range of matters including:

  • Revenue’s approach to tax payment difficulties in affected businesses of all sizes, including businesses dealt with by the Medium Enterprises Division and Large Corporates Division.
  • Prioritisation of the processing of tax refunds in the system.
  • Suspension of the “late surcharge” for corporation tax returns due to be submitted in March and in future months, until further notice.
  • Recognition of an individual’s “force majeure” presence in Ireland, due to travel bans, when determining payroll withholding obligations and tax residence.
  • Resourcing of MyEnquiries to deal with increased taxpayer and tax agent contacts.
  • Suspension of audit and other compliance intervention activities on taxpayers’ premises until further notice.
  • Clarification of the procedure for cancelling a ROS Debit Instruction (RDI)
  • Arranging a phased payment arrangement, and the need for a flexible approach to the duration and commencement date for the arrangement.
  • Processing of refunds where iXBRL financial statements are outstanding.
  • Attendance of non-resident directors at Irish board meetings by video conference having no impact on a company’s tax residence.

The Institute also wrote to the Minister for Finance & Public Expenditure and Reform, Paschal Donohoe T.D., on 23 March 2020, seeking urgent measures to deal with the cash-flow difficulties for businesses and noting the wide-ranging tax administration and payment issues arising for businesses affected by the COVID-19 pandemic, previously submitted to Revenue on 19 March 2020.

The Institute wrote to the Minister for Finance, Paschal Donohoe T.D., on 7 October 2020, seeking to alleviate the late filing surcharge for income tax and to consider including income tax in phased payments arrangements at the reduced interest rate of 3% due to the challenges facing businesses impacted by Covid-19 in meeting the income tax filing deadline.

We will continue to engage with the Department of Finance and with Revenue on the impact of the crisis and supports for businesses and we will update members on this webpage, on Twitter and in TaxFax.

Government Resources

June 2021 – Economic Recovery Plan 2021

February 2021 – COVID-19 Resilience and Recovery: The Path Ahead

Ongoing updates on the Irish Government’s response to COVID

Department of the Taoiseach

June 2021 – Launch of the Economic Recovery Plan 2021

July 2020 – July Jobs Stimulus

Department of Finance

June 2021 – Minister Donohoe announces further economic supports for businesses as they re-open

May 2020 – Government outlines further measures to support businesses impacted by COVID-19

March 2020 – Minister Donohoe’s announcement of measures relating to bank borrowings

Department of Employment Affairs and Social Protection (DEASP)

July 2020 – Measures to get people back to work or education as part of the July Stimulus package

July 2020 – Minister Humphreys announces €2.3 billion expenditure on income and employment supports as part of the July Stimulus Package

Department of Business Enterprise and Innovation (DBEI)

Government supports for COVID-19 impacted businesses

June 2020 – Minister Humphreys announces expansion of COVID-19 Loan Fund and Future Growth Loan Scheme

April 2020 – Minister Humphreys announces Major Expansion of Business Supports for SMEs

March 2020 – New Business Continuity Voucher goes live through Local Enterprise Offices

March 2020 – Six-month moratorium on interest and repayments on new Microfinance Ireland COVID-19 loan

March 2020 – Business Continuity Planning: Checklist of preparatory actions in responding to COVID-19

March 2020 – Minster Humphrey’s announcement of a package of supports for businesses affected by COVID-19

COVID-19 Business Loans up to €50,000 for micro-businesses

Local Enterprise Ireland COVID-19 assistance

Financial supports available through the Strategic Banking Corporation of Ireland

Companies Registration Office

October 2020 – Update regarding annual filing of returns for companies

June 2020 – Update regarding annual filing of returns for companies

March 2020 – Update regarding annual filing of returns for companies

EU and International Resources


June 2020 – Commission to expand State aid Temporary Framework

April 2020 – Coronavirus Response: Commission adopts banking package to facilitate lending to households and businesses in the EU

April 2020 – Commission and European Investment Fund unlock €8 billion in finance for small and medium-sized businesses

April 2020 – State aid: Commission extends Temporary Framework

April 2020 – Commission waives customs duties and VAT on the import of medical equipment from non-EU countries

April 2020 – Commission sets up €100 billion solidarity instrument to help Member States: temporary support to mitigate unemployment risks in an emergency (SURE)

March 2020 – Statement of EU Ministers of Finance on the Stability and Growth Pact in light of the COVID-19 crisis – 23 March

March 2020 – State aid: Commission adopts Temporary Framework to enable Member States to further support the economy in the COVID-19 outbreak


OECD COVID 19 webpage: Contributing to a global effort

September 2020 – OECD Report Tax Policy Reforms 2020 show countries have responded decisively to the COVID-19 crisis but face significant fiscal challenges ahead

August 2020 – OECD updates database on tax policy measures in response to COVID-19

July 2020 – Tax Administration Responses to COVID-19 Report published

May 2020 – OECD publishes reports on economic recovery from the COVID-19 pandemic

May 2020 – Foreign direct investment flows in the time of COVID-19

May 2020 – OECD analysis provides insight on consumption tax revenues under the COVID-19 crisis

April 2020 – OECD Taxing Wages 2020 report provides baseline for measuring the impact of COVID-19

April 2020 – OECD report on tax and fiscal policy in response to the coronavirus crisis

April 2020 – OECD Forum on Tax Administration publishes advice on business continuity considerations for tax administrations

April 2020 – OECD Secretariat Analysis of Tax Treaties and the Impact of the COVID-19 Crisis (Permanent Establishments and Cross Border Workers)

April 2020 – OECD Database: Tax Policy Measures in Response to Covid-19 Pandemic (Update)

March 2020 – OECD Forum on Tax Administration Report: Tax Administration Responses to COVID-19: Measures Taken to Support Taxpayers