Dáil Éireann Debate, Thursday - 5 February 2015
137. Deputy Michael McGrath asked the Minister for Finance the tax expenditure, the number of participants and the number of jobs supported under the foreign earnings deduction scheme in 2013 and 2014; and if he will make a statement on the matter. [5382/15]
View answerThe full year estimated cost to the Exchequer of the Foreign Earnings Deduction (FED) for the 2013 tax year, the latest year for which complete statistics are available, was €0.8 million. 106 employees claimed the deduction for that tax year. Complete information in relation to 2014 tax year returns is not yet available, as the Form 11 tax returns for 2014 are not due to be filed until later this year.
There is no reporting requirement in relation to the number of jobs supported by the incentive. However, the Deputy will be aware that it was introduced to encourage the development of trade and exports to non-traditional markets for Irish goods and services. The conditions surronding qualification for the deduction were significantly enhanced in the recent Finance Bill, following a review of the FED, which was carried out last year. The report of that review was published on Budget day and is available at http://www.budget.gov.ie/Budgets/2015/Documents/FED_Report_Oct14_final.pdf.
