Tax Tip: Working Abroad

If you are expanding your business overseas then you should consider whether any of your employees could avail of the foreign earnings deduction.

In order to claim the relief the employee must spend at least 30 qualifying days in the foreign jurisdiction in the tax year or in a 12 month period. A qualifying day is one of at least 3 consecutive days spent working in the relevant state.

The amount of the relief is capped at €35,000 or the amount calculated using the formula, D x E / F.

  • D is the number of qualifying days worked in a relevant state during the tax year
  • E is all the income received from the employment in the tax This includes any taxable share options less any qualifying pension premium. It excludes allowable expenses payments, Benefits in Kind (BIK), termination and restrictive covenants payments.
  • F is the total number of days that the employment is held in the

The relevant states are Brazil, Russia, India, China, South Africa, Egypt, Algeria, Senegal, Tanzania, Kenya, Nigeria, Ghana, The Congo, Japan, Singapore, Korea, Saudi Arabia, UAE, Qatar, Bahrain, Indonesia, Vietnam, Thailand, Chile, Oman, Kuwait, Mexico, Malaysia, Columbia and Pakistan.

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Joe McAvoy

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Dara Burke

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Shane Carroll

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