SARP was first introduced in 2012 to encourage the relocation or assignment of key employees to work in Ireland. Where certain conditions are satisfied, 30% of taxable employment income over €75,000 will be disregarded for income tax purposes. Income which is disregarded for income tax purposes is not exempt from the Universal Social Charge (USC) or PRSI. Finance Act 2019 extended SARP in its present format to December 2022 (previously December 2020).
Upper income threshold
Where the employee first arrives in the State, on or after 1 January 2019 to perform the duties of their employment, SARP provides for relief from income tax on 30% of the employee’s income between €75,000 and €1,000,000. Prior to Finance Act 2018, for the years 2015 until 2018, there was no upper income threshold.
Time limit for application
Where conditions of the relief are satisfied, an employer must file a Form SARP 1A for each employee availing of SARP relief. The form must be submitted to Revenue within 90 days of the employee’s arrival into Ireland.
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