Taxes Consolidation Act 1997 section 196B

Employees of certain agencies: foreign service allowances

Section 196B exempts from income tax certain allowances and benefits-in-kind paid to employees of specified State agencies who are required to live outside Ireland to carry out their duties.

• The exemption applies to employees of Enterprise Ireland, An Bord Bia, Tourism Ireland Ltd, and the Industrial Development Agency (Ireland) who are posted abroad.
• To qualify, the allowances or benefits-in-kind must be certified by the Minister for Finance, after consulting the Minister for Foreign Affairs or another appropriate Minister, as representing compensation for the extra cost of living outside the State.
• The term "emoluments" in this section refers specifically to benefits-in-kind (within the meaning of section 985A) and does not include normal salary, which remains taxable in the usual way.
• The section has effect from 1 January 2007 and was introduced by Finance Act 2007.