Section 14 of Finance Act 2012 introduced the Special Assignee Relief Programme which is designed to reduce the cost to employers of assigning key individuals in their companies from abroad to take up positions in the Irish based operations of their employer. The programme provides for an exemption from income tax on 30% of salary between €75,000 and €500,000 for employees that are assigned for a minimum of 1 year. The exemption is available for a maximum of 5 years. The scheme operates through the PAYE system as a deduction from income tax, but USC and PRSI continue to be payable on the full income amount.
The scheme has been introduced for an initial three-year period ending on 31 December 2014, in order to allow for review. Any assignee that avails of the scheme during this time will have access to the relief for the period of their assignment, up to the maximum 5 years.
Paragraph 10 of Section 14 provides that relevant employers must submit an annual return to the Revenue Commissioners detailing, inter alia, the number of employees and the amounts of exempt income claimed under the programme. This return will not be sought until after the end of the tax year in order to ensure that an accurate picture of take up levels over a full tax year can be provided. Therefore, given that 2012 is the first year of the programme, it will be 2013 before reliable statistics on its uptake will be available.