196A State employees: foreign service allowances

Summary

This section exempts from income tax certain allowances or emoluments paid to officers of the State representing compensation for the extra cost of living outside the State while on foreign service.

Details

An exemption from income tax is provided for such allowances or emoluments paid to an officer of the State as the Minister for Finance, having consulted with the Minister for Foreign Affairs or such other Minister as is appropriate in the circumstances, certifies as representing compensation for the additional cost of having to live outside the State in order to perform the duties of the office.

Definitions

(1) “emoluments” is defined as being emoluments to which the provisions of section 985A applies i.e. benefits-in-kind. Normal salary payments are excluded from the provision and continue to be assessable as income arising from the holding of an office.

(2) “officer of the State” is defined as —

• a civil servant within the meaning section 1(1) of the Civil Service Regulation Act 1956,
• a member of the Garda Síochána, or
• a member of the Permanent Defence Force.

(3) The section has effect from 1 January 2005.

Relevant Date: Finance Act 2021