Section 823A Deduction for income earned in certain foreign states

(1) In this section—

“qualifying day”, in relation to an office or employment of an individual, means a day on or after 1 January 2012 which is one of at least 3 consecutive days throughout the whole of which the individual is present in a relevant state for the purposes of the performance of the duties of the office or employment and where such consecutive days (taken as a whole) are substantially devoted to the performance of such duties, but no day shall be counted more than once as a qualifying day, and presence in a relevant state shall include the duration of time spent travelling directly from the State to a relevant state, and from a relevant state to the State or to another relevant state;

“relevant office or employment” means an office or employment part of the duties of which are performed in a relevant state on a qualifying day;

“relevant period”, in relation to a year of assessment, means a continuous period of 12 months part only of which is comprised in the year of assessment;

“relevant state” means, as regards the years of assessment 2012 to 2020, the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China or the Republic of South Africa, and includes—

(a) as regards the years of assessment 2013 to 2020, the Arab Republic of Egypt, the People’s Democratic Republic of Algeria, the Republic of Senegal, the United Republic of Tanzania, the Republic of Kenya, the Federal Republic of Nigeria, the Republic of Ghana and the Democratic Republic of the Congo,

(b) as regards the years of assessment 2015 to 2020, Japan, the Republic of Singapore, the Republic of Korea, the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Qatar, the Kingdom of Bahrain, the Republic of Indonesia, the Socialist Republic of Vietnam, the Kingdom of Thailand, the Republic of Chile, the Sultanate of Oman, the State of Kuwait, the United Mexican States and Malaysia, and

(c) as regards the years of assessment 2017 to 2020, the Republic of Colombia and the Islamic Republic of Pakistan;

“the specified amount”, in relation to a year of assessment and an individual, means an amount determined by the formula—

D x E
F

where—

D is the number of qualifying days in the year of assessment in relation to the individual,

E is all the income, profits or gains that arise in the year of assessment from a relevant office or employment, whether chargeable under Schedule D or E, and includes so much of any gain to which section 128 applies on which tax is payable in the State where such gain is realised by the exercise, assignment or release of a right obtained by the individual as an office holder or employee in the relevant office or employment, after deducting any contribution or qualifying premium in respect of which there is provision for a deduction under section 774(7), 787, 787E or 787N but excluding—

(a) any expense to which section 118 applies,

(b) any amount treated as emoluments of an employment under section 121(2)(b)(ii) by virtue of a car being made available by reason of the employment,

(c) any sum treated for the purposes of section 112 as a perquisite of an office or employment by virtue of section 122,

(d) any payment to which section 123 applies, or

(e) any sum deemed to be profits or gains arising or accruing from an office or employment by virtue of section 127(2),

and

F is the aggregate number of days in the year of assessment that the individual held a relevant office or employment.

(2) (a) Subject to paragraph (b), this section shall apply to—

(i) an office of director of a company which is within the charge to corporation tax, or would be within the charge to corporation tax if it were resident in the State, and which carries on a trade or profession,

(ii) an employment other than—

(I) an employment the emoluments of which are paid out of the revenue of the State, or

(II) an employment with any board, authority or other similar body established by or under statute.

(b) This section does not apply to income from an office or employment that—

(i) is chargeable to tax in accordance with section 71(3), or

(ii) is income to which section 472D, 822, 825A or 825C applies.

(3) Where for any year of assessment an individual resident in the State makes a claim in that behalf to and satisfies an authorised officer that either—

(a) the number of days in that year which are qualifying days in relation to an office or employment of the individual (together with any days which are qualifying days in relation to any other such office or employment of the individual), or

(b) the number of such days referred to in paragraph (a) in a relevant period in relation to that year and no part of which period is comprised in any other relevant period,

amounts to at least 30 days, there shall be deducted from the income, profits or gains of the individual from all offices or employments assessable under Schedule D or E, as may be appropriate, an amount equal to the specified amount in relation to that office or employment or those offices or employments but that amount, or the aggregate of those amounts where there is more than one such office or employment, shall not exceed €35,000.

(4) Notwithstanding anything in the Tax Acts, the income, profits or gains from an office or employment shall for the purposes of this section be deemed not to include any amounts paid in respect of expenses in respect of which a deduction would be due under section 114.

(5) Where for a year of assessment an individual is entitled to relief under Part 35 for tax paid under the laws of a relevant state on the amount of income, profits or gains from a relevant office or employment attributable to the performance of the duties of the relevant office or employment on qualifying days in that relevant state, the specified amount shall be reduced by the amount of such income, profits or gains.

(6) This section shall continue to apply for the years of assessment 2015 to 2020.