Knowledge for international Entrepreneurs
Changes in the fixed expenditure regime were expected by Revenue to be implemented next month, but were barred by the Tax Strategy Group, which is reviewing the tax deductibility of employment spending.
Flat-rate expenses are those that cover the cost of equipment needed for the job, and Revenue has planned to change the operation of this scheme.
Revenue review of the system has been ongoing for the past 18 months, and now the differences in the treatment of the new regime among self-employed workers, employees and the nature of the claimed expenses are under discussion.
About 600,000 workers entitled to fixed benefits are expected to have been affected by the new regime. The sectors expected to be lost through the changes were agricultural consultants, cardiac technicians, journalists, professional evaluators in the evaluation office, independent employment actors, and store assistants.
The review is scheduled to be completed soon and implemented by January 1, 2021.