127B Tax treatment of flight crew in international traffic

Summary

This section provides for the taxation of the employment income arising to flight crew members in respect of employments exercised aboard aircraft operated in international traffic where the place of effective management of the enterprise is in this State.

There is an exemption from the charge to Income Tax under this section for the year of assessment 2022 or any subsequent year of assessment where an individual satisfies the required conditions for that year.

Details

The section has effect for the year of assessment 2011 and subsequent years.

The charge

(1) Employment income arising to flight crew members in respect of employments exercised aboard aircraft operated in international traffic where the place of effective management of the enterprise is in this State shall be chargeable to tax under Schedule E.

(2) In this context, aircraft operated in “international traffic” does not include aircraft operated solely between places in another state.

The exemption

A charge to tax will not arise under this section, where for the year of assessment 2022 or any subsequent years, an individual for that year -

• (1A)(a) is not resident in the State,
• (1A)(b) is resident in a territory with which Ireland has a Double Taxation Agreement, and
• (1A)(c) is subject to tax on this employment income in a territory with which Ireland has a Double Taxation Agreement.

Relevant Date: Finance Act 2021