Budget 2017: More than 300 executives avail of special relief

Some 302 executives availed of the special assignee relief programme (SARP) in 2014, at a cost to the exchequer of €5.9 million in revenue foregone.

This represented a significant ramping up of the numbers availing of the relief, which was introduced in 2012, when 11 received the tax break at a cost of about €100,000 in lost revenue.

In 2013, some 121 executives availed of the scheme at a cost of €1.9 million to the State. Figures for 2015 are not yet available.

Minister for Finance Michael Noonan announced in the budget that he was extending the relief until the end of 2020 as part of a series of measures to assist sectors of the economy that might be adversely effected by Brexit.

Revenue figures show that 88 people in the €75,000-€150,000 income bracket availed of SARP in 2014, with 79 earning €150,001-€225,000.

Some 63 who were on incomes of €225,001-€300,000 availed of the relief, with 29 who were earning between €300,001-€375,000.

In addition, 43 executives earning more than €375,000 benefitted from the tax break.

According to employers, there was an increase of 126 employees as a result of SARP in 2014, while 708 were retained as a result of the relief, employers said.

The financial services industry accounted for 101 employees who availed of SARP in 2014, followed by the IT sector at 79.

SARP provides for income tax relief on a proportion of income earned by an employee assigned to work in the State for their employer. They can claim to have 30per cent of their income over €75,000 disregarded for income tax purposes.

A relevant employer is a company incorporated and tax resident in a country with which the Ireland has a double taxation agreement or a tax information exchange agreement.