This report covers the changed position on the part of Irish Revenue concerning meeting the 30-day following arrival in Ireland deadline for Special Assignee Relief Program applications.
The Irish Revenue authorities, until recently, have taken a lenient approach with regards to accepting late applications for the Special Assignee Relief Program (SARP). However, Revenue has now confirmed in writing to the KPMG International member firm in Ireland that it expects the 30-day deadline for application submissions to be met. More flexibility around granting SARP may occur only in circumstances where there is a reasonable delay of a maximum two to three months by virtue of staff illness or delays in acquiring information.
Employers planning to send employees to Ireland and wanting to claim SARP should be aware of the importance of immediate action with regards to lodging the SARP application with Revenue. The only way to make sure a claim will be accepted is to submit the application within 30 days of first arrival in Ireland (not the date of employment).
The SARP is Ireland’s expatriate tax concession to attract key talent to work in Ireland and has been in place since 2012.1 The relief grants a 30-percent income tax deduction on earnings in excess of €75,000 and tax relief on employer-provided children’s education and one return trip home for the family for up to five years.
The relief was modified in 2015 (see GMS Flash Alert 2014-098, 29 October 2014) and part of these modifications included a requirement for a SARP application to be made within 30 days of arrival in Ireland. Not surprisingly this short application period has seen many applications submitted late over the last couple of years.
Employers should be reminded that if a claim is rejected, the concession is not available and a potentially valuable tax relief will be lost.
1 See GMS Flash Alert 2012-050 (27 February 2012) for further details of the relief. For a copy of this Flash Alert, please contact your local KPMG tax professional.
The information contained in this newsletter was submitted by the KPMG International member firm in Ireland.
© 2018 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.