Dáil Éireann Debate, Thursday - 19 December 2013
112. Deputy Michael McGrath asked the Minister for Finance the number of persons to date that have availed of the foreign earnings deduction relief; the amount of tax foregone as a result of the tax relief granted; his views on the number of jobs that may have been created under the programme; and if he will make a statement on the matter. [55091/13]
View answerSection 12 of Finance Act 2012 provided for a limited tax deduction for individuals who temporarily carry out the duties of their office or employment in Brazil, Russia, India, China or South Africa. The provision applies as respects the years 2012, 2013 and 2014. The first year of the programme was 2012 and the relevant details of tax claims received to date from PAYE employees for that year are as follows:
Numbers of employees availing of the scheme: 25
Relevant Countries: China, India, Russia, South Africa and Brazil.
Number of employers associated with employees availing of the scheme: 21
Amount of tax forgone: €120,400 (rounded to nearest €100).
Details of further claims were also provided as follows in the Form 11 tax returns for 2012 filed under the self-assessment system in October/November of 2013:
Numbers of employees availing of the scheme: 51
Relevant Countries: China, India, Russia, South Africa and Brazil.
Number of employers associated with employees availing of the scheme: not available
Estimated amount of tax forgone: €455,000 (rounded to nearest €100), on the basis of an assumed tax rate of 41%.
The deduction was extended in Finance Act 2013 to include related travel to Egypt, Algeria, Senegal, Tanzania, Kenya, Nigeria, Ghana and the Democratic Republic of the Congo for the 2013 & 2014 tax years. Any further extension of the deduction for work related travel to other countries would be a matter for consideration as part of the annual Budget and Finance Bill process.
Employers have no role in this relief; it is claimed at the end of the year by the employee who has undertaken the travel. Therefore, it is not possible to say how many jobs may have been created.
