Topical Questions

Home Carer Tax Credit

Can employees working in Ireland on short term assignments claim the home carer tax credit in respect of a dependent child where the claimant is not in receipt of child benefit in this State?

The definition of “dependent person” in Section 466A(1) TCA 1997 includes at (a) a child in respect of whom either the qualifying claimant or his or her spouse is, at any time in a year of assessment, in receipt of child benefit under Part IV of the Social Welfare (Consolidation) Act, 1993.

Individuals on short term assignments normally remain within their home country social security system for the duration of their assignment to Ireland. Such individuals do not therefore claim child benefit under Part IV of the Social Welfare (Consolidation) Act, 1993. In such circumstances, if the claimant is in receipt of a similar type payment in their home country, Revenue are prepared to accept that condition (a) in Section 466A TCA 1997 is satisfied. The other conditions as set out in the section, e.g., child residing with the qualifying claimant, etc., must also be met.