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Section 825C Special assignee relief programme

Amendments

Section 825C inserted by Finance Act 2012 section 14 from 1 January 2012.

(1) In this section—

“associated company”, in relation to a relevant employer, means a company which is the relevant employer’s associated company within the meaning of section 432;

[“PPS number”, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;]1

“relevant employer” means a company that is incorporated, and tax resident, in a country or jurisdiction with the government of which arrangements are for the time being in force by virtue of subsection (1) or (1B) of section 826;

“relevant employment”, in relation to a relevant employee, means an employment held by the relevant employee with a relevant employer;

“relevant income”, in relation to a relevant employee and a tax year, means the relevant employee’s income, profits or gains for a tax year from an employment with a relevant employer or with an associated company, including any specified amount for which a deduction is claimed under subsection (3) but excluding the following:

(a) any expense to which section 118 applies;

(b) any amount treated as emoluments of an employment under section 121(2)(b)(ii);

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

(d) any payment to which section 123 applies;

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

(f) [any bonus, commission or other similar payments]2, whether contractual or otherwise;

(g) any gain to which section 128 applies;

(h) any shares or share based remuneration provided by or on behalf of the relevant employer or associated company of the relevant employer;

“Revenue officer” means an officer of the Revenue Commissioners;

[…]3

“tax year” means a year of assessment for income tax purposes.

Amendments

1 Definition of “PPS number” inserted by Finance Act 2014 section 15(a)(i).

2 Substituted by Finance Act 2014 section 15(a)(ii) from 23 December 2014.

3 Definition of “specified amount” deleted by Finance Act 2014 section 15(a)(iii) from 23 December 2014.

(2) (a) [In this section, in the case of an individual who arrives in the State in any of the tax years 2012, 2013 or 2014,]1“relevant employee” means an individual who—

(i) for the whole of the 12 months immediately before his or her arrival in the State was a full time employee of a relevant employer and exercised the duties of his or her employment for that relevant employer outside the State,

(ii) arrives in the State […]2, at the request of his or her relevant employer to—

(I) perform in the State the duties of his or her employment for that employer, or

(II) to take up employment in the State with an associated company,

(iii) performs the duties of his or her employment in the State for that relevant employer or for that associated company, as appropriate, for a minimum period of 12 consecutive months from the date he or she takes up residence in the State, and

(iv) was not resident in the State for the 5 tax years immediately preceding the tax year in which he or she first arrives in the State for the purposes of performing the duties referred to in subparagraph (iii).

(b) In determining whether the duties of an employment [are performed in the State for the tax years 2012, 2013 and 2014,]3 any duties performed outside the State, the performance of which is merely incidental to the performance of those duties in the State, shall be treated as having been performed in the State.

Amendments

1 Substituted by Finance Act 2014 section 15(b)(i) from 23 December 2014.

2 Deleted by Finance Act 2014 section 15(b)(ii) from 23 December 2014.

3 Substituted by Finance Act 2014 section 15(b)(iii) from 23 December 2014.

(2A) In this section, in the case of an individual who arrives in the State in any of the tax years [2015 to 2020,]1 “relevant employee” means an individual—

(a) who for the whole of the 6 months immediately before his or her arrival in the State was a full time employee of a relevant employer and exercised the duties of his or her employment for that relevant employer outside the State,

(b) who arrives in the State at the request of his or her relevant employer to—

(i) perform in the State duties of his or her employment for that employer, or

(ii) to take up employment in the State with an associated company and to perform duties in the State for that company,

(c) who performs the duties referred to in paragraph (b) for a minimum period of 12 consecutive months from the date he or she first performs those duties in the State,

(d) who was not resident in the State for the 5 tax years immediately preceding the tax year in which he or she first arrives in the State for the purposes of performing the duties referred to in paragraph (b), and

(e) in respect of whom the relevant employer or associated company certifies, in such form as the Revenue Commissioners may require, within 30 days from the employee’s arrival in the State to perform the duties referred to in paragraph (b), that the individual complies with the conditions set out in paragraphs (a), (b) and (c).

Amendments

Subs (2A) inserted by Finance Act 2014 section 15(c) from 23 December 2014.

1 Substituted by Finance Act 2016 section 10(a), with effect from 1 January 2017.

(2B) (a) In this section, “specified amount”, in relation to a relevant employee and a tax year, means an amount determined by the formula—

(A-B) x 30 per cent.

(b) For the purposes of paragraph (a) —

(i) ‘A’ is the amount of the relevant employee’s income, profits or gains for the tax year from the employment referred to in subsection (2)(a)(ii) or (2A)(b), as the case may be, excluding any amount that is not assessed to tax in the State, and after deducting—

(I) any contribution or qualifying premium in respect of which there is provision for a deduction under section774(7), 787, 787E or 787N, and

(II) any amount of income, profits or gains from that employment in respect of which the relevant employee is entitled to relief under Part 35 for tax paid on such income, profits or gains under the laws of a territory other than the State,

but in respect of the tax years 2012, 2013 and 2014 where this amount exceeds €500,000, ‘A’ shall be €500,000, and

(ii) ‘B’ is €75,000.

(c) Notwithstanding paragraph (b) —

(i) where, in the tax year for which a relevant employee is first entitled to relief under this section, the period from the date the relevant employee commences the performance in the State of duties of the employment with the relevant employer or associated company to the end of the tax year is less than the tax year, ‘B’ shall be reduced proportionately,

(ii) where, in the last tax year for which a relevant employee is entitled to relief under this section, the period from the start of the tax year to the date the relevant employee ceases the performance of duties in the State of the employment with the relevant employer or associated company is less than the tax year, ‘B’ shall be reduced proportionately.

Amendments

Subs (2B) inserted by Finance Act 2014 section 15(c) from 23 December 2014.

(3) (a) Subject to paragraph (b), where, for a tax year, a relevant employee—

(i) is resident in the State for tax purposes and is not resident elsewhere,

(ii) performs the duties referred to in subsection (2)(a)(ii) or (2A)(b), and

(iii) has relevant income from his or her relevant employer or from the associated company, the annualised equivalent of which is not less than €75,000,

and makes a claim in that behalf, then that relevant employee shall be entitled to have an amount of income, profits or gains from his or her employment with a relevant employer or from his or her employment with an associated company equal to the specified amount deducted from the income, profits or gains to be assessed on that relevant employee for that tax year.

(b) With effect from the tax year 2015, paragraph (a)(i) shall apply as if the words ‘and is not resident elsewhere’ were deleted.

(c) A relevant employee shall only be entitled to relief under this section for 5 consecutive tax years commencing with the tax year for which the relevant employee is first entitled to relief under this section.

Amendments

Subs (3) substituted by Finance Act 2014 section 15(d) from 23 December 2014.

(4) For the purposes of subsections (2B)(c) and (3), the tax year for which a relevant employee is first entitled to relief under this section means—

(a) in the case of a relevant employee who arrives in the State in 2012, 2013 or 2014—

(i) the first tax year in which the relevant employee arrives in the State for the purposes set out in subsection (2)(a)(ii) provided that for that tax year the relevant employee is resident in the State for tax purposes and not resident elsewhere, or

(ii) if not resident in the State for tax purposes for that first tax year, the tax year following that first tax year provided that for that following tax year the relevant employee is resident in the State and not resident elsewhere, or

(iii) where in that first tax year, he or she is resident in the State for tax purposes and is also resident elsewhere, the tax year following that first tax year provided that for that following tax year he or she is resident in the State for tax purposes and is not resident elsewhere,

but, as regards a relevant employee who arrives in the State in 2014, subparagraph (ii) shall apply as if the words ‘and not resident elsewhere’ were deleted, and subparagraph (iii) shall apply as if the words ‘and is not resident elsewhere’ were deleted,

(b) in the case of a relevant employee who arrives in the State in [any of the tax years 2015 to 2020]1

(i) the first tax year in which the employee arrives in the State for the purposes set out in subsection (2A)(b), provided that for that tax year he or she is resident in the State for tax purposes, or

(ii) if not resident in the State for tax purposes for that first tax year, the tax year following that first year provided that for that following tax year he or she is resident in the State.

Amendments

Subs (4) substituted by Finance Act 2014 section 15(e) from 23 December 2014.

1 Substituted by Finance Act 2016 section 10(b), with effect from 1 January 2017.

(5) …

Amendments

Subs (5) deleted by Finance Act 2014 section 15(f) from 23 December 2014.

(6) [In any tax year in respect of which]1 a relevant employee is entitled to make a claim for relief under subsection (3), the payment or reimbursement by the relevant employer or by an associated company of—

(a) the reasonable costs associated with one return trip from the State for the relevant employee, his or her spouse or civil partner, and a child of the relevant employee or of the relevant employee’s spouse or civil partner to—

(i) the country of residence of the relevant employee before his or her arrival in the State,

(ii) the country of residence of the relevant employee at the time of first employment by the relevant employer, or

(iii) the country of which the relevant employee or his or her spouse or civil partner is a national,

and

(b) the cost of fees, not exceeding €5,000 per annum in respect of each child of the relevant employee or each child of his or her spouse or civil partner, paid to a school established in the State and which has been approved by the Minister for Education and Skills for the purposes of providing primary or post-primary education to students,

shall not be chargeable to tax.

Amendments

1 Substituted by Finance Act 2014 section 15(g) from 23 December 2014.

(7) Where for a tax year a relevant employee makes a claim for relief under this section—

(a) relief shall not be given under section 823A, 825A or 472D for that tax year, and

(b) section 71(3) shall not apply to any of the income, profits or gains from an employment with a relevant employer or with an associated company.

(8) Where for a tax year a relevant employee makes a claim for relief under this section, the relevant employee shall, notwithstanding anything to the contrary in [Part 41A or 1084]1, be deemed for that tax year to be a chargeable person for the purposes of [Part 41A]2.

Amendments

1 Substituted by Finance Act 2013 section 92 and Schedule 1 Part 2(f)(i) from 1 January 2013.

2 Substituted by Finance Act 2013 section 92 and Schedule 1 Part 2(f)(ii) from 1 January 2013.

(9) Notwithstanding the requirement on a relevant employer or associated company, as the case may be, to deduct tax under Chapter 4 of Part 42 on the specified amount, no such tax deduction need be made where, [following an application, in such form as the Revenue Commissioners may require, by the relevant employer or associated company,]1 as appropriate, a Revenue officer confirms in writing that no such deduction need be made.

Amendments

1 Substituted by Finance Act 2014 section 15(h) from 23 December 2014.

(10) On or before 23 February following each tax year, a relevant employer or associated company shall deliver to the Revenue Commissioners an annual return, in such form as the Revenue Commissioners may require, setting out—

(a) in respect of each relevant employee—

(i) the name and PPS number,

(ii) nationality,

(iii) country in which the relevant employee worked for the relevant employer prior to his or her first arrival in the State to perform duties of the relevant employment,

(iv) job title and brief description of the role of the relevant employee while availing himself or herself of relief under this section, and

(v) where relevant, the amount of income, profits or gains in respect of which tax was not deducted in accordance with subsection (9),

(b) details of the increase in the number of employees employed, or details of the number of employees retained, by the relevant employer or associated company as a result of the assignment to the State of the employees referred to in paragraph (a), and

(c) the relevant employer’s or associated company’s employer registration number.

Amendments

Subs (10) substituted by Finance Act 2014 section 15(i) from 23 December 2014.

(11) …

Amendments

Subs (11) deleted by Finance Act 2014 section 15(j) from 23 December 2014.

(12) Notwithstanding anything in the Tax Acts, the income, profits or gains from an employment with a relevant employer or with an associated company shall, for the purposes of this section, be deemed not to include any amounts paid in respect of expenses for which deductions would be due under section 114.