Foreign Earnings Deduction - Definition

Foreign Earnings Deduction

Definition of ‘qualifying day’ Section 823 TCA 1997

Revenue have been asked to clarify our interpretation of ‘qualifying day’ for the purposes of the foreign earnings deduction (FED). In particular, clarification has been sought as to whether the day of departure is a ‘qualifying day’ for the purposes of the FED.

Revenue’s view is that ‘qualifying days’ are generally those days (i.e.midnight to midnight) where the individual is absent from the State for the purpose of performing the duties of the office or employment and which are part of a continuous period of absence of at least 14 days.

Day of Departure

Where an individual has left the State before midnight, that day of departure will count as a qualifying day for the purposes of the relief where it is followed by a continuous period of absence of at least 13 days. Outstanding claims for relief will be settled on this basis.