Taxes Consolidation Act 1997 section 127A

Tax treatment of members of the European Parliament

Section 127A sets out how income arising to a member of the European Parliament (MEP) is chargeable to Irish tax and provides relief from double taxation where EU tax has been paid on that income.

• A MEP's salary paid by the Oireachtas is taxable under Schedule E (PAYE), while salary paid from the EU budget is taxable under Schedule D Case III (self-assessment).
• Credit is granted for any EU tax deducted at source against the Irish tax liability on that salary, thereby avoiding double taxation.
• Allowances paid to MEPs by the EU (such as the general expenditure allowance, travel expenses and daily subsistence) are not subject to Irish tax.
• Transitional allowances and pensions paid to former MEPs are chargeable to Irish income tax and USC, and must be returned on a Form 11.