Tax Code

Dáil Éireann Debate, Tuesday - 13 December 2016

Tuesday, 13 December 2016

Ceisteanna (183)

Paul Murphy

Ceist:

183. Deputy Paul Murphy asked the Minister for Finance if the unemployment benefits paid to former staff of the EU institutions under article 29(a) staff regulations of officials of the European Communities are subjected to PRSI and USC in view of the fact they are on unemployment benefit which is normally exempted when paid by the State; if those persons in receipt of this EU unemployment benefit can avail of the PAYE tax credit on a par with those in receipt of Irish unemployment benefits; and if he will make a statement on the matter. [40052/16]

Freagraí scríofa

Minister for Finance

Following clarification with the Deputy's Office, it is understood that his question refers to article 28(a) of Staff Regulations of Officials of the European Communities. Under article 12 of the Protocol on the Privileges and Immunities of the European Union (formerly article 13), the unemployment allowance paid to a former member of the temporary staff of the EU institutions under article 28(a)(8) of the EU Staff Regulations is liable to tax for the benefit of the Union. Consequently, no charge to income tax or USC arises in the State. In the circumstances, the question as to whether or not the PAYE tax credit is due does not arise. Furthermore, I am advised by the Minister for Social Protection that, as the payment does not attract income tax, it is not subject to PRSI.