Revenue Note for Guidance

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Revenue Note for Guidance

194AA Exemption of certain childcare support payments

Summary

This section exempts from tax certain payments made by or on behalf of the Minster for Children and Youth Affairs under the following schemes:

  • Affordable Childcare Scheme
  • Community Childcare Subvention
  • Community Childcare Subvention Plus
  • Community Childcare Subvention Resettlement
  • Community Childcare Subvention Resettlement (Transitional)
  • Community Childcare Subvention Universal
  • Training and Employment Childcare

Details

Definitions

(1) “cohabitant” has the same meaning as section 172 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010.

“eligible child” means a child in respect of whom a qualifying payment is made.

“Minister” means the Minister for Children and Youth Affairs.

“qualifying payment” means a payment made under the Affordable Childcare Scheme which is provided for in section 15 of the Childcare Support Act 2018.

“relevant payment” means a payment made by or on behalf of the Minister under the following schemes:

  • Community Childcare Subvention
  • Community Childcare Subvention Plus
  • Community Childcare Subvention Resettlement
  • Community Childcare Subvention Resettlement (Transitional)
  • Community Childcare Subvention Universal
  • Training and Employment Childcare

Exemption from tax

(2) Qualifying payments made under the Affordable Childcare Scheme, are exempt from income tax, USC and PRSI in the hands of a parent, guardian or their cohabitant.

(3) Relevant payments made on or after 1 January 2019 under Community Childcare Subvention, Community Childcare Subvention Plus, Community Childcare Subvention Resettlement, Community Childcare Subvention Resettlement (Transitional), Community Childcare Subvention Universal and Training and Employment Childcare are exempt from income tax, USC and PRSI in the hands of a parent, guardian or their cohabitant.

(4) Relevant payments made prior to 1 January 2019 under Community Childcare Subvention, Community Childcare Subvention Plus, Community Childcare Subvention Resettlement, Community Childcare Subvention Resettlement (Transitional), Community Childcare Subvention Universal and Training and Employment Childcare are exempt from income tax, USC and PRSI in the hands of a parent, guardian or their cohabitant.

Relevant Date: Finance Act 2021