RELIEF FOR FOREIGN EMPLOYEES

The Finance Act 2012 was signed by the President on 31^st March 2012. The Act provides new and amended reliefs for foreign employees.

Foreign Earnings Deduction – BRICS Countries

This is a new relief aimed at individuals temporarily carrying out duties in Brazil, Russia, India, China or South Africa (BRICS Countries) and applies for the tax years 2012, 2013 and 2014. The income tax deduction can be claimed where the individual is present for a total of 60 days in any 12 month period (only days which form part of a 10 day or more visit will count) in one the BRICS countries.

The maximum relief available in any year will be €35,000 which results in a maximum tax benefit of €14,350. The relief does not apply to the USC charge and PRSI.

Special Assignee Relief Programme (SARP)

This is an amendment to the existing relief which is aimed at employees who have been assigned from abroad by a foreign company to work in Ireland in their Irish operation in the years 2012, 2013 and 2014.  The relief operates by way of a repayment of income tax at the marginal rate on 30% on the salary between €75,000 and €500,000. The relief is available to employees who are assigned for a minimum of 1 year to a maximum of 5 years. The employee must have worked for the foreign employer for at least 12 months and has not been resident in Ireland in the previous 5 years.

The relief does not apply to the USC charge and PRSI.

For further information on the above reliefs and the conditions that apply please contact the PGL tax department on 01-2615300