Cap. 123 Art. 90ATax on part-time work.

(1) With effect from the 1st day of January 1996, where an individual is receiving full-time instruction at a university, college or other similar educational institution or was serving an apprenticeship with a view to qualifying in a trade or calling, or where an individual has income in his own right falling under article 4(1)(b) or (d), and has during the year immediately preceding the year of assessment other income from such part-time work as may be prescribed, he shall subject to the other provisions of this article pay tax at the rate of 15 cents (0.15) on every euro of such other income, and he shall not be required to declare any such other income, in any return made pursuant to the Income Tax Acts:

Provided that where the other income derived from part-time work is income as is described in article 4(1)(a) and (b), the provisions of this article shall apply with respect to that other income only up to such limit as may be prescribed.

(2) Notwithstanding the provisions of sub-article (1), an individual may declare all his income from part-time work together with the rest of his income in his return made in accordance with the Income Tax Acts, and he will be charged tax on all his income in accordance with the provisions of paragraph (a) or (b) (as the case may be) of article 56(1), and in any such case any tax paid on such other income in accordance with this article shall be available as a credit against the individual’s tax liability and where any tax so paid is in excess of such liability, it shall be refunded.

(3) Notwithstanding the provisions of sub-article (1) an

*Applicable from year of assessment 2021. individual, whose projected total income for a calendar year, including income derived from part-time work, is not expected to exceed such sum over which he would become liable to tax, may, if the income from part-time work falls under the description in article 4(1)(b), at any time of the year by notice in writing on the prescribed form, direct the employer with whom he is performing part-time work not to deduct tax on his income from part-time work.

(4) For the purposes of sub-article (3) hereof where an individual’s annual wages or salary from his full time employment exceed such amount over which he would become liable to tax, or where in the previous year his total income rendered him liable to tax, his projected total income for the relevant year will be expected to exceed such sum over which he would become liable to tax.

(5) Where the total income of an individual who has given notice as is provided in sub-article (3), during the year in which the said notice has been given reaches such sum as would render such individual liable to tax, such individual shall inform the Commissioner accordingly on the prescribed form and if he elects to pay tax on his other income derived from part-time work in accordance with the provisions of sub-article (1) he shall direct his employer to deduct tax at the rate of 15 cents (0.15) in the euro, and furthermore, where he elects to pay tax on his other income derived from part-time work in accordance with the provisions of sub-article (1) he shall either -

(a) direct his employer to make such further deductions from his income so that the tax due in accordance with sub-article (1) on all income deriving from part-time work as aforesaid is so deducted by the 31st December of that year; or

(b) pay such tax due, to the Commissioner by not later than such date following the relevant year as may be prescribed.

(6) Where an employer who in accordance with this article is to deduct tax at 15 cents (0.15) in the euro fails for any reason to deduct such tax, it shall be the duty of the individual from whose income such deduction is to be made, to inform the Commissioner accordingly and to make payment of the tax due directly to the Commissioner:

Provided that the employer shall still remain liable for any liability under article 23(4) of the Income Tax Management Act.

(7) (a) Where the income from part-time work is income falling under article 4(1)(b), the person paying the income shall, at the time of payment, unless otherwise directed in accordance with sub-article (3) and in accordance with the provisions of article 23 of the Income Tax Management Act, deduct tax at the rate of 15 cents (0.15) in the euro, and any tax so deducted shall be remitted to the Commissioner accordingly.

(b) Where the income from part-time work is income falling under article 4(1)(a), the individual shall pay to the Commissioner an amount equivalent to 15 cents (0.15) for every euro of the income from part-time work in such manner as may be prescribed in accordance with the provisions of article 42 of the Income Tax

Management Act, where applicable.

(8) Where an individual who is to pay tax on part-time work at the rate of 15 cents (0.15) in the euro as provided in sub-article (1), fails to pay such tax on all his income from part-time work subject to such tax by such date following the relevant year as may be prescribed and such individual receives a notice in writing in terms of article 13(7) of the Income Tax Management Act, all the income from part-time work shall be added with the rest of the individual’s income and tax shall be assessable thereon in accordance with the provisions of article 56.

(9) In the case of a married couple where the spouses are living together, other than spouses in respect of whom an election for a separate return for the purposes of article 49A is effective, the provisions of this article shall apply to either or each of the spouses where at least one of the spouses is receiving full-time instruction or is serving an apprenticeship or has income in his or her own right as described in sub-article (1) and either or each of the spouses has other income from part-time work as therein described.

(10) Where an individual declares that income is derived from part-time work and the Commissioner has reason to believe that such income was derived from an activity which is not on a part-time basis, or is the individual’s normal activity or is ancillary thereto, the Commissioner shall consider such income as not qualifying to be subject to tax under sub-article (1) and shall assess it as if the foregoing provisions of this article did not apply thereto, and any tax remitted in respect of such income shall be available as a credit against the individual’s tax liability for the relevant year of assessment and where any tax so remitted is in excess of such liability it shall be refunded.

*

(11) With effect from the year of assessment 2023, the rate of tax on income from part-time work to which this article applies shall be ten cents (€0.10) on every euro (€1) and the provisions of this article shall apply as if all the references therein to the rate of fifteen cents (€0.15) on every euro (€1) were references to a rate of ten cents (€0.10) on every euro (€1).

†