Revenue Note for Guidance

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Revenue Note for Guidance

88A Double deduction in respect of certain emoluments

Note: This scheme and the relief under Section 472A has ceased for all employments commencing on or after 1 July 2013.


This section, together with section 472A, provides tax incentives, for both employers and employees, to help the long term unemployed to return to employment. Employers may claim a double deduction in computing the profits of the trade or profession in respect of the first 3 years wages paid to qualifying employees. This double deduction may also be claimed in respect of the employers’ PRSI contribution on such wages.

Both incentives apply in respect of individuals who have been unemployed for at least 12 months and in receipt of a specified social welfare payment or who are in a category approved of for the purposes of the scheme by the Minister for Social, Community and Family Affairs with the consent of the Minister for Finance.



(1)emoluments”, “employment”, “employment scheme”, “qualifying employment” and “qualifying individual” have the same meanings as in section 472A.

qualifying period”, in relation to a qualifying employment, means the period of 36 months beginning with the date on which the employment commences.


(2) In addition to the normal deduction, an employer who engages a qualifying employee is entitled to an additional deduction in respect of —

  • the wages paid to the qualifying employee, and
  • the employer’s PRSI contribution in respect of such wages.

This additional deduction is confined to the first 36 months of the qualifying employee’s employment but will not be available if either the employer or the employee is benefiting or has benefited under an employment scheme in respect of the employment for which the additional deduction is claimed. In this connection, FÁS (non apprenticeship) training courses, the Community Employment Scheme, the Job Initiative Programme, the “Workplace” 5 week job experience programme and the Back to Education Scheme administered by the Department of Social, Community and Family Affairs are not regarded as employment schemes.

(3)(a)&(b) This section will cease to have effect in respect of-

  • wages paid for an employment and
  • the employer’s PRSI contribution in respect of such wages,

for all employments commencing on or after 1st July 2013.

Relevant Date: Finance Act 2021