Taxes Consolidation Act 1997 section 196A

State employees: foreign service allowances

Section 196A exempts from income tax certain allowances or emoluments paid to officers of the State that represent compensation for the extra cost of living outside the State while performing their duties on foreign service.

• Allowances or emoluments paid to officers of the State that are certified by the Minister for Finance as compensation for the extra cost of living abroad are exempt from income tax.
• The Minister for Finance must consult with the Minister for Foreign Affairs, or another appropriate Minister, before certifying the allowance or emoluments.
• "Officer of the State" means a civil servant, a member of the Garda Síochána, or a member of the Permanent Defence Force; "emoluments" means benefits-in-kind to which section 985A applies, so normal salary remains taxable.
• The exemption is deemed to have applied from 1 January 2005.