Deduction for income earned in certain foreign states (FED)

Section 823A of the Taxes Consolidation Act 1997 provides for relief from taxation on emoluments of individuals who are resident in the State for tax purposes but who spend significant amounts of time working in a "relevant state".

Section 16 of Finance Act 2014 introduced amendments to section 823A as follows. For the years 2015, 2016 and 2017:

• the number of relevant states has increased to include Japan, Singapore, Korea, Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Indonesia, Vietnam, Thailand, Chile, Oman, Kuwait, Mexico and Malaysia;
• the number of "qualifying days" has been reduced from 60 to 40; and
• time spent travelling from Ireland to a relevant state, or from a relevant state to Ireland or to another relevant state is deemed to be time spent in a relevant state.

Manual 34.00.09 has been amended to reflect these changes.

23 December 2014