PAYE exclusion order : Conflicting advice

[sandyh2001in]

Hi

I propose to pay Directors fee to an overseas director of my Irish limited company. I wrote an email to Revenue asking if a PAYE exclusion order may be issued.
They replied to the email that it can be issued and there would be no PAYE/USC chargeable.

On actually applying for the exclusion order they came back and told my accountant over the phone that Director's fee may be taxed in Ireland as per double taxation agreement between IE and overseas country.

Why is there so much conflict between what Revenue advice over the phone and email?

Whats the correct position on this?
Is PRSI and USC applicable to a foreign based Director with no ties to Ireland (and ZERO claims to Irish social security system)?

 

[Jim2007]

On actually applying for the exclusion order they came back and told my accountant over the phone that Director's fee may be taxed in Ireland as per double taxation agreement between IE and overseas country.

As you have been told it depends on the double tax agreement and since you have not told is which country, it is hard to comment...

 

[John Conlon]

An old case tippinf v Jeancard found that a directorship of an Irish registered company is an office under Irish law and as such taxable under Scghedule E i.e. PAYE
There are exceptions where the director is a partner in a professional firm and the money is paid to the firm.
The relevant treaty will have a provision relating to this.

If the income is taxed here the director will be entitled to tax credit in their home country if there is a treaty in place.