476 Relief for fees paid for training courses

Summary

This section provides income tax relief for tuition fees paid for training courses in the areas of information technology and foreign languages. The relief only applies where the courses and the course providers have been approved by FÁS. Courses can be up to 2 years in duration and must comply with a code of standards as to the quality and standard of training, etc. To qualify for the relief, the individual who attends the course of study must receive a certificate of competence on completion of the course. The tax relief is granted at the standard rate of income tax, and applies to fees ranging from €315 to €1,270. The relief can be claimed by an individual in respect of fees paid by him/her on provision of proof of payment of those fees.

Details

Definitions

(1) “An Foras” is an Foras Áiseanna Saothair (FÁS).

“appropriate percentage” means, in relation to a year of assessment, a percentage equal to the standard rate of tax for that year.

“approved course provider” is a person approved by FÁS who operates in accordance with a code of standards agreed between FÁS and the Minister with the consent of the Minister for Finance.

“approved course” is a course of less than 2 years’ duration in areas of information technology or foreign languages which are approved by the Minister. The course must be approved by FÁS in accordance with an agreed code of standards and must result in the awarding of a certificate of competence.

“certificate of competence” is a certificate to the effect that the recipient has achieved a minimum level of competence.

“foreign language” is a language other than an official language of the State.

“the Minister” is the Minister for Enterprise, Trade and Employment.

“qualifying fees” are fees in respect of an approved course which are not less than €315 and to the extent that they do not exceed €1,270.

Relief

(2) Where an individual proves that he/she has made a payment in respect of qualifying fees in respect of an approved course and the person in respect of whom the fees are paid has been awarded a certificate of competence in respect of that course, the income tax chargeable on that individual (other than his/her liability in respect of tax withheld from annual payments under section 16(2)) is to be reduced by an amount equal to the lesser of —

• the amount equal to the appropriate percentage of the aggregate of all qualifying payments made, and
• the amount which reduces the individual’s tax charge to nil (that is, the relief cannot create a repayment).

The reference to section 16(2) ensures that tax deducted from annual payments is retained in charge against the person deducting it and that the tax deducted is not diluted by the relief provided by this section.

(3) In the case of married persons or civil partners who are jointly assessed to tax, qualifying fees paid by a non-assessable spouse or other civil partner, are (except in cases of separate assessment) deemed to have been made by the assessable spouse or nominated civil partner.

Limits on relief

(4) Relief will be granted in respect of an individual only in respect of one approved course in any one year of assessment.

Reimbursement of fees

(5) If any part of the fees paid are or are to be met by way of grant, scholarship or otherwise, relief is not to apply to that amount of the fees.

Withdrawal of approval

(6) FÁS may withdraw approval of a course provider or a course where it is satisfied that the course provider or course no longer meets the code of standards laid down.

Notification by FÁS

(7) FÁS is to notify the Revenue Commissioners of approvals, or withdrawals of approvals, of course providers and courses. The Revenue Commissioners may consult with FÁS if a question arises as to whether a course provider or a course is an approved course provider or an approved course.

Bar on double relief

(8) The relief is given in substitution and not in addition to any relief to which the individual may be entitled to in respect of the same payment under any other provision of the Income Tax Acts.

Commencement

(9) The relief applies from such date as may be fixed by order of the Minister for Finance.

The Minister for Finance made such an order on 31 March, 1998, with effect from that date (S.I. No. 87 of 1998).

Relevant Date: Finance Act 2021