Taxes Consolidation Act 1997 section 192O

Exemption in respect of Clinical Placement Allowance

Section 192O exempts clinical placement allowances paid to undergraduate nursing and midwifery students from income tax, USC and PRSI.

• A qualifying payment (Clinical Placement Allowance) made by or on behalf of the Minister for Health to an eligible nursing or midwifery student is fully exempt from income tax, USC and PRSI.
• The exemption applies to payments made on or after 1 January 2024, and also retrospectively to payments made before that date.
• A qualifying student must be registered on the candidate register of the Nursing and Midwifery Board of Ireland and undertaking a supernumerary clinical placement as part of an approved undergraduate nursing or midwifery programme.
• The payment is excluded from the PAYE system (Chapter 4 of Part 42) and is not reckoned in computing the student's total income for income tax purposes.