Taxes Consolidation Act 1997 section 769

Relief for training of local staff before commencement of trading

Section 769 provides a writing-down allowance for pre-trading expenditure incurred by a manufacturer on the recruitment and training of staff, where all or a majority of those staff are Irish citizens.

• A person about to commence a trade of manufacturing goods for sale may claim an allowance for pre-trading recruitment and training costs, provided all or a majority of the recruits are Irish citizens.
• The allowance is written down over a three-year period beginning on the date the trade is set up or commences, and any excess that cannot be absorbed may be carried forward against future trading profits.
• Expenditure that would not otherwise be deductible under normal trading rules (such as capital expenditure), and any amount met by the State or by another person, is excluded from the allowance.
• A claim for the allowance must be included in the claimant's annual tax return, accompanied by a signed certificate confirming that the expenditure was incurred on recruitment and training of persons who are all or mainly Irish citizens.