Vol. 575 No. 1
105 Mr. R. Bruton asked the Minister for Finance the tax relief provisions that apply to third level study, distinguishing the conditions, coverage and thresholds for different types of course at undergraduate and postgraduate level. [27963/03]
The rules governing income tax relief for fees paid for third level education are contained in section 473A of the Taxes Consolidation Act 1997.
In brief, the position is that tax relief, at the standard rate, may be claimed in respect of qualifying fees paid by an individual to an approved college in respect of full-time or part-time undergraduate courses in Ireland and elsewhere in the EU and postgraduate courses both in Ireland and abroad. Undergraduate courses must be of at least two academic years' duration while postgraduate courses must be of at least one, but not more than four, academic years' duration.
Tax relief is also available in respect of fees paid for training courses, of less than two years' duration, in the areas of information technology and foreign languages.
Tuition fees paid by an individual on his or her own behalf or on behalf of a spouse, child or person for whom the individual is the legal guardian all qualify for relief. The relief is limited to tuition fees and is not available for maintenance, registration fees, exam fees or other expenses incurred. No relief is available for any part of fees which are met directly or indirectly by grants, scholarships, an employer or otherwise.
The maximum relief that can be claimed is set by the Minister for Education and Science. It is currently €3,175 per year in respect of third level fees. In the case of fees for training courses in foreign languages and information technology, the maximum relief is set at €1,270 per annum and no relief is due where the fees for the course are less than €315.
An individual may seek clarification from his or her local tax office as to whether or not a particular course has been approved for tax relief purposes by the Department of Education and Science, or the Department of Enterprise, Trade and Employment and FÁS in the case of training courses.
The explanatory leaflet, IT31, and application form in respect of tax relief on tuition fees is available on the Revenue website at www.revenue.ie A list of the courses eligible for tax relief for the academic year 2003/2004 may also be found on the Revenue website under publications and lists.
