Dáil Éireann Debate, Wednesday - 19 December 2018
139. Deputy Michael McGrath asked the Minister for Finance the annual cost of the special assignee relief programme for the previous five years including 2018; the number of companies that have availed of the scheme in each of these years by multinational companies and SME companies; and if he will make a statement on the matter. [53753/18]
Amharc ar fhreagraSARP was introduced in Budget 2012 as part of a strategy to promote Foreign Direct Investment into Ireland, and to allow us to compete internationally to attract highly skilled and mobile executives who act as key decision makers within organisations.
The measure provides income tax relief on a portion of income earned by employees, who are assigned by their employer to work in Ireland, and who previously worked abroad for that employer for a minimum of six months. There is no exemption or relief from USC and PRSI is payable where the individual is not liable to social insurance contributions in the home country.
The 2016 annual Revenue report on SARP shows that for the years 2012 to 2016 (the most recent year for which data are available) the annual cost of the measure was as follows:
|
Tax Cost 2012 |
Tax Cost 2013 |
Tax Cost 2014 |
Tax Cost 2015 |
Tax Cost 2016 |
|
€0.1 million |
€1.9 million |
€5.9 million |
€9.5 million |
€18.1 million |
Regarding the Deputy's question as to the number of companies that have availed of the scheme in each of these years by multinational companies and SME companies, Revenue have advised me that a breakdown of company types, whether SME or multinationals, is not available. However, the following table sets out the numbers of individual claimants for the period 2012-2016.
|
2012 |
2013 |
2014 |
2015 |
2016 |
|
11 |
121 |
302 |
586 |
793 |
As the Deputy is aware, I recently brought forward an amendment to the Finance Bill 2018 to place a ceiling of €1 million on eligible income for SARP purposes. This change will be effective for new entrants to the programme from 1 January 2019 and for existing beneficiaries of the programme from 1 January 2020. In addition, I announced that a full review of SARP will be carried out in 2019.
