Pharma and Life Science Tax Programme - Wednesday 13th January 2021 - Deloitte
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Pharma and Life Science Tax Programme Wednesday 13th January 2021
Welcome
Colin Forbes
Partner Tax & Legal
© 2021 Deloitte Ireland LLP. All rights reserved. 2
Pharma and Life Science Tax Programme
Event Date Topics
Today Employment tax issues including revenue audits, health-checks & reward
Wed, 27 January Global mobility matters including COVID-19 arrangements, Brexit & immigration
Share remuneration, corporate tax, transfer pricing, VAT & customs
Wed, 10 February
Wed, 24 February Intellectual property, R&D tax credits & government grants
© 2021 Deloitte Ireland LLP. All rights reserved. 3
Today’s speakers:
Colin Forbes Breda Mullaney Debbie Jennings
Partner, Tax & Legal Director, Tax & Legal Director, Tax & Legal
+353 1 417 2993 +353 1 417 3622 +353 1 417 2530
cforbes@deloitte.ie brmullaney@deloitte.ie djennings@deloitte.ie
Anne Kelleher Jane Drew
Director, Tax & Legal Manager, Tax & Legal
+353 1 417 2901 +353 1 417 2646
ankelleher@deloitte.ie jadrew@deloitte.ie
© 2021 Deloitte Ireland LLP. All rights reserved. 4
Welcome and Introductions
Agenda
Employment Tax
- Recent Issues and Updates
- Revenue Audits and Interventions
Reward
- Future of Rewards
- Gender Pay Gap Reporting
Thank you and Closing
© 2021 Deloitte Ireland LLP. All rights reserved. 5
Employment Tax
Breda Mullaney
Director, Tax & Legal
Debbie Jennings
Director, Tax & Legal
© 2021 Deloitte Ireland LLP. All rights reserved. 6
Recent Issues / Updates © 2021 Deloitte Ireland LLP. All rights reserved. 7
COVID-19 - Reliefs and Concessions – Local Employees
Company Cars
No BIK if employer prohibits use/takes back
possession
Mileage based on Jan 2020 ( Was to cease 31
Working/ Partying Dec 2020 – but now continues)
from Home Small Benefit Exemption
E-workers: €3.20 per day Relaxation of rules for vouchers
Employer Provided Equipment given to frontline and other key staff
Seasonal Parties (Ceases 31 Dec 2020)
Taxis to/from Work
Health & Safety concerns – No BIK
(Ceases 31 Dec 2020)
COVID-19 Testing/ Flu
Vaccine
Employer Provided
No BIK for testing
Flu vaccine – new concession, but Accommodation
appears to be just for 2020 Temporary in nature
To mitigate against transmission risks
Medical insurance (To be reviewed in first half of 2021
re cessation)
Different treatment depending on
whether refund made to the
employer or refund split between
employer and employee
© 2021 Deloitte Ireland LLP. All rights reserved. 8
Professional Subscriptions
Updated guidance in early January 2020 (eBrief 03/20)
Conditions:
− Is there a statutory requirement for the membership?
− Is there a legal reason that necessitates membership to
perform the employees duties?
− Is membership commercially necessary?
− Is membership an indispensable condition of the tenure of
employment?
Check Revenue indicators!
© 2021 Deloitte Ireland LLP. All rights reserved. 9
Company Cars
− New rules to be introduced from 1 January 2023 in relation
to company vehicles
− Will apply 5 different categories depending on Co2 emissions
− Calculates the BIK based on the category of the vehicle and
the business mileage
− BIK charge will be calculated at between 9% and 37.5%
− Currently calculated at between 5% and 30%
− Exemption for electric vehicles will be abolished
© 2021 Deloitte Ireland LLP. All rights reserved. 10Revenue Audits / Interventions © 2021 Deloitte Ireland LLP. All rights reserved. 11
A Changed Landscape
Revenue’s Risk related
access to behaviour is
Landscape E-Audits will
Tax is being Information driving revenue
continually soon be the
digitalised and use of audit/
evolving norm
technologies compliance
growing interventions
© 2021 Deloitte Ireland LLP. All rights reserved. 12Hot Topics – Employment Taxes
Professional
Subscriptions Contractors
Mobile
Directors
Workforce
Travel and
Subsistence
Medical
Employee Insurance
Expenses Premiums –
Gross versus
Net
Company
Vehicles BIK
© 2021 Deloitte Ireland LLP. All rights reserved. 13What to consider? What can you do?
PAYE Settlement
PAYE Modernisation
Agreement
What to
consider?
Disclosure to Revenue Health –Check
Co-operative Compliance Framework (CCF)
© 2021 Deloitte Ireland LLP. All rights reserved. 14Reward
Anne Kelleher
Director, Tax & Legal
Jane Drew
Manager, Tax & Legal
© 2021 Deloitte Ireland LLP. All rights reserved. 15Future of Reward
What changes are companies looking to make?
We asked companies what changes they were planning to make over the next 12 months and what
changes they thought they might want to make in the future as the organisation evolves.
Changes planned for the next 12 months Thinking forward 5 years + what changes
to reward could be made
• There is a clear correlation between • Expected to see radical change in the
how companies have been impacted by economy, society and the way we work
COVID-19 and their stance on salary • Companies predicted that reward
increases frameworks would be simplified, with
• Greater flexibility in working patterns increased transparency and flexibility
• Movement towards companies
introducing new recognition schemes to
reflect the new working environment
• Companies differ in their approach to Flexibility 35%
reward framework changes from more Simplicity /
tactical i.e. introducing a new benefit, transparency 17%
to more wholescale changes focused
Considering RSUs in 11%
on simplifying reward frameworks future
• Companies considering introducing RSUs Less focus on variable 10%
pay
Non-financial 6%
measures
0% 10% 20% 30% 40%
© 2021 Deloitte Ireland LLP. All rights reserved. 16
• Future of Reward - Below board reward structure summary, December 2020, DeloitteFuture of Reward
Thoughts for the future
Thoughts for the future
The future workforce, workplace and nature of work itself are shifting to become more agile, more digitalised
and more skills and experience based.
Traditional Reward Future of Reward
• Remain market based to provide
Base salary • Narrowly defined the fundamental, baseline
monetary reward required to meet
Benefits • Often one size fits all employee expectations
• Become more personalized and
• Sometimes opaque dynamic to suit individual needs
Bonus
to employees • Align with what motivates individuals
• Not always aligned • Agile and meets the needs of the
Equity
to organizational remote worker
goals and what • More focused on instant recognition
workers value and collective sharing of success
The future of reward will include new types of rewards which focus on different motivational levers.
Promote and encourage Translate and connect the Promote & encourage a
Invest in the skills and
specific outcomes, organisation’s purpose, mission, thriving workforce and / or
capabilities of the
performance or ethics and values to worker’s which enhance the workforce
workforce
behaviours interests experience
Underpinned by fair pay and core rewards package
© 2021 Deloitte Ireland LLP. All rights reserved. 17
• Future of Reward - Below board reward structure summary, December 2020, DeloitteGender Pay Gap Reporting
Legislation Reporting Requirements
• Legislation is before Dáil Éireann at • Employers with 250 or more
the Fourth Stage employees.
• Expected regulation and awareness • Submit the information to a designated
2021, estimated reporting end 2022 public body as well as on company
• EU Gender Equality Strategy 2020- website
2025 published in March 2020 • Disclosure expected to be similar to the
UK but with several additions
Expected elements in the calculation of GPG
% of men and % of men and Mean / Median GPG Mean / Median GPG % of men and
Mean / Median Mean / Median
women receiving a women in each pay for part-time for employees on women receiving
GPG gender bonus gap
bonus quartile employees temporary contracts BIK’s
What to consider, what you can do
3. Know your 4. Implement 5.
1. Engagement 2. Resources
GPG changes Communications
© 2021 Deloitte Ireland LLP. All rights reserved. 18Close
Colin Forbes
Partner
© 2021 Deloitte Ireland LLP. All rights reserved. 19Pharma and Life Science Tax Programme
Other events as part of the series
Event Date Registrations Links
Wed, 27 January Global mobility matters including COVID-19 arrangements, Brexit & immigration
Share remuneration, corporate tax, transfer pricing, VAT & customs
Wed, 10 February
Wed, 24 February Intellectual property, R&D tax credits & government grants
© 2021 Deloitte Ireland LLP. All rights reserved. 20Thank you for attending Webinar | Wednesday 13th January
At Deloitte, we make an impact that matters for our clients, our people, our profession, and in the wider society by delivering the solutions and insights they need to address their most complex business challenges. As the largest global professional services and consulting network, with approximately 286,000 professionals in more than 150 countries, we bring world-class capabilities and high-quality services to our clients. In Ireland, Deloitte has nearly 3,000 people providing audit, tax, consulting, and corporate finance services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience and insight to collaborate with clients so they can move forward with confidence. This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte Ireland LLP accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. Deloitte Ireland LLP is a limited liability partnership registered in Northern Ireland with registered number NC1499 and its registered office at 19 Bedford Street, Belfast BT2 7EJ, Northern Ireland. Deloitte Ireland LLP is the Ireland affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its member firms are legally separate and independent entities. DTTL and Deloitte NSE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network of member firms. © 2021 Deloitte Ireland LLP. All rights reserved.
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