Dáil Éireann Debate, Tuesday - 26 July 2022
419. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year revenue that would be generated by abolishing the special assignee relief programme; and if he will make a statement on the matter. [41556/22]
View answerUnder section 825C to the Taxes Consolidation Act 1997, the Special Assignee Relief Programme (SARP) provides Income Tax relief for certain individuals assigned to work in the State during any of the tax years 2012 to 2022.
The aim of the relief is to reduce the cost to employers of assigning skilled individuals from foreign-based operations to take up positions in the Irish-based operations of their employer or an associated company, thereby facilitating the creation of jobs and the development and expansion of businesses in Ireland.
The latest annual costs available for SARP can be found in the 'Statistics on Special Assignee Relief Programme 2019' report which is published on the Revenue website at www.revenue.ie/en/corporate/documents/research/sarp-report-2019.pdf.
According to that report, the annual cost of SARP for 2012 to 2019 (the most recent year for which data are available) is as follows:
|
Year |
€m |
|
2012 |
0.1 |
|
2013 |
1.9 |
|
2014 |
5.9 |
|
2015 |
9.5 |
|
2016 |
18.1 |
|
2017 |
28.1 |
|
2018 |
42.4 |
|
2019 |
38.2 |
As the Deputy may be aware, following on from concerns I had regarding the increasing cost of the incentive, I amended the SARP legislation in Finance Bill 2018 to reinstate an upper salary threshold at the level of €1 million. This change came into effect for new entrants to the programme from 1 January 2019 and for existing beneficiaries from 1 January 2020 and, as a result, the 2019 annual cost indicates a sharp reversal in the growth in the overall cost of the scheme.
I am advised that Revenue does not maintain a projected future cost for SARP given the number of variables that would be involved in estimating with any degree of reliability. While abolishing SARP-related costs can be viewed as a saving to the Exchequer, likely losses resulting from lower employment levels (and related tax receipts) and other indirect effects within the activities that are supported by the Programme would also need to be factored into the equation. As such, it is not possible to estimate the likely savings which would accrue to the Exchequer in 2023 or in the years beyond that if SARP were abolished.
As matters stand, SARP is subject to a sunset clause whereby it is due to expire on 31 December 2022 and so the future of the scheme beyond that date will fall to Government to consider in the context of the Budget 2023 and Finance Bill 2022 process. The Deputy will be aware that it is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any matter that might be the subject of Budget decisions.
