Wednesday, 8 May 2019

Questions (184)

Willie O'Dea

Question:

184. Deputy Willie O'Dea asked the Minister for Finance the social welfare payments that are subject to tax and exempt from tax, respectively in tabular form; and if he will make a statement on the matter. [19791/19]

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Written answers (Question to Finance)

Social welfare payments are exempt from USC and PRSI. With certain exceptions social welfare payments are subject to taxation.

Section 126 (6A) of the Taxes Consolidation Act 1997 (TCA), as amended by the Finance Act 2018, sets out certain of those social welfare payments which are exempted from income tax, as follow:

 "A payment which is -

(a)described in column (1) of the Table to this section,

(b)paid on the basis specified in column (2) of that Table, and

(c)made by the Minister for Employment Affairs and Social Protection to an individual on or after 1 January 2019,

shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

Description of payment

Basis on which payment is made

Basic supplementary welfare allowance

Section 189 of the Act of 2005. (The Social Welfare Consolidation Act 2005.)

Back to education allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to education   allowance’

Back to work enterprise allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to work   enterprise allowance’

Back to school clothing and footwear allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Back to school   clothing and footwear allowance’

Carer’s support grant

Section 225 of the Act of 2005

Constant attendance allowance

Section 78 of the Act of 2005

Death benefit -  funeral expenses

Section 84 of the Act of 2005

Death benefit - orphans

Section 83 of the Act of 2005

Direct provision allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Direct provision   allowance’

Disability allowance

Section 210 of the Act of 2005

Disablement gratuity

Section 75(8) of the Act of 2005

Domiciliary care allowance

Section 186F of the Act of 2005

Exceptional needs payment

Section 201 of the Act of 2005

Farm assist

Section 214 of the Act of 2005

Fuel allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Fuel allowance’

Guardian’s payment (contributory)

Section 130 of the Act of 2005

Guardian’s payment (non-contributory)

Section 168 of the Act of 2005

Household benefit package

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Household benefit   package’

Humanitarian assistance payment

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Humanitarian assistance payment’

Jobseeker’s allowance

Section 141 of the Act of 2005

Jobseeker’s transitional payment

Section 148A of the Act of 2005

Medical care

Section 86 of the Act of 2005

Part-time job incentive scheme

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Part-time job   incentive scheme’

Rent allowance

Section 23 of the Housing (Private Rented Dwellings) Act 1982

Supplementary welfare allowance

Section 198 of the Act of 2005

Telephone support allowance

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Telephone support   allowance’

Training support grant

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Training support grant’

Urgent needs payment

Section 202 of the Act of 2005

Widowed or surviving civil partner grant

Section 137 of the Act of 2005

Working family payment

Section 228 of the Act of 2005

Youth employment support scheme

A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as ‘Youth employment   support scheme’

In addition to the payments set out in the table above, there are specific other exemptions provided for in the Taxes Consolidation Act 1997. These specific exemptions are as follow:

Child Benefit (exempt under section 194 TCA).

The Back to Work Family Dividend (exempt under section 194B TCA).

Jobseekers Benefit payable to a person in systematic short-time employment (exempt under section 126 (3)(c) TCA ).

The first €13 per week of the aggregate of the amounts of Jobseekers Benefit payable to an unemployed person (Section 126 (4) TCA).

Any element of  Illness, Jobseekers Benefit, Injury Benefit or Pay-Related Benefit payments which relate to amounts in respect of dependent children Section 126 (3) (a) TCA .