Dáil Éireann Debate, Tuesday - 8 April 2014
130. Deputy Michael McGrath asked the Minister for Finance the tax expenditure associated, the number of participants and jobs supported under the foreign earnings deduction scheme in each year since its inception; and if he will make a statement on the matter. [16421/14]
View answerSection 12 of Finance Act 2012 introduced the Foreign Earnings Deduction which provides 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 scheme was extended in Finance Act 2013 to include travel to Nigeria, Senegal, Algeria, Egypt, Ghana, the Democratic Republic of Congo, Kenya and Tanzania for 2013 and 2014.
The full year estimated cost to the Exchequer of the Foreign Earnings Deduction scheme for the 2012 tax year was €0.6 million in respect of 83 employees. Complete information in relation to 2013 returns is not yet available as the Form 11 tax returns for 2013 are not due to be filed until later this year. However, tax claims received to date for PAYE employees indicate an estimated cost of €0.05 million in respect of 8 employees.
The tax relief is claimed at the end of the tax year by the employee who has undertaken the travel. There is no reporting requirement in relation to the number of jobs supported by the incentive, however it was introduced to encourage the development of trade and exports to non-traditional markets for Irish goods and services.
