The relief commonly known as SARP - Special Assignee Relief Programme, was introduced to reduce the cost to foreign employers of employees who take up positions in the Irish based operations of their organisations.
This is provided to employees who work in the state and gives tax relief where an assignee’s relevant income exceeds €75,000 per tax year. This relief can be claimed for a maximum of 5 years consecutively.
There are certain payments that can be made free of tax from the employer to the employee –
- Payment for one return trip home
- Payment of up to €5,000 for primary/secondary education for any children of the employee/civil partner
To qualify for SARP –
- Employee must be assigned to work in Ireland
- Employee must be working for their employer for 12 months prior to being assigned
- Employee must be working in Ireland 2012,2013,2014
- The assignment must be for a minimum of 12 months
- Employee must be a tax resident in Ireland and not due to pay tax in another country
- The employee must not have been resident in Ireland in the 5 years prior to arrival
A SARP (Special Assignee Relief Programme) return must be completed and filed by 23rd February 2015 by employers who had employees avail of SARP in 2014.