SARP was first introduced in 2012 to encourage the relocation/assignment of key employees to Ireland.
There have been a number of changes to the relief since it was first introduced which have made the relief more accessible and attractive. Finance Act 2016 recently extended the relief to employees arriving to work in Ireland up to the end of 2020.
Where the conditions for the relief 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. Employees who qualify for SARP, can also have school fees of up to €5,000 per annum, per child and one return trip for the employee and their family paid by the employer, free of tax. The relief is available for five consecutive tax years from arrival, subject to meeting certain conditions.
In this document we look at:
- qualifying conditions;
- calculation of the relief
- how to claim the relief; and
- reporting requirements.