This week’s 2020 Budget announcement in Ireland saw limited changes impacting personal income tax. However the Irish government extended the Special Assignee Relief Program (SARP) for a further two years to 31 December 2022.
Where the conditions for the relief are satisfied, 30% of taxable employment income over €75,000 will be disregarded for income tax purposes. Income which is disregarded for income tax purposes is not exempt from the Universal Social Charge (USC) or PRSI. Employees who qualify for SARP, can also have school fees of up to €5,000 per annum, per child and one return trip for the employee and their family paid by the employer, free of tax. The relief is available for five consecutive tax years from arrival, subject to meeting certain conditions.
For international businesses with mobile employees working in Ireland, the extension is a welcome announcement, mitigating tax cost to employees and the business. Assignment cost forecasting can be reviewed and budgeting undertaken with continuing relief for qualifying employees.
More information on SARP and the 2020 Budget can be found at grantthornton.ie.
Budget 2020 summary