The Special Assignee Relief Programme is specifically aimed at employees who have been assigned by his or her employer to relocate to Ireland to work for that same employer.
If the employee earns in excess of €75,000 per year, they may be eligible to claim tax back under the Special Assignee Relief Programme.
The conditions to qualify for SARP are as follows:
• The employee must not have been a resident of Ireland in the 5 years before commencing employment in Ireland.
• The employee must have worked for a minimum of six months for the relevant employer outside Ireland immediately before commencing work in Ireland.
• The employment must last at least 12 months in Ireland.
• The employee must earn in excess of €75,000 per annum.
• SARP is allowable up to a maximum of €1,000,000 Income.
• The employer must send a Form SARP 1A to Revenue within 90 days (formerly 30 days) of the employee arriving in Ireland to take up duties.
Benefits of the SARP Credit:
30% of income above €75,000 is subject to relief at the higher rate of tax.
This tax relief can be claimed for five years.
To highlight the benefit of this tax credit, please see the example below:
Jean is a UK Citizen who has been transferred from the London branch of a financial services company to the Dublin branch in Ireland for the next 5 years. Jean’s first-year salary in Ireland is €100,000, rising by €25,000 per year for each of the five years while based in Ireland:
| YEAR | Jeans Annual Salary (A) | SARP Threshold (B) | Gross Income Available (A-B) | Gross Income Available*30% | Relief @ Marginal Rate(40%) |
| 1 | €100,000 | €75,000 | €25,000 | €7,500 | €3,000 |
| 2 | €125,000 | €75,000 | €50,000 | €15,000 | €6,000 |
| 3 | €150,000 | €75,000 | €75,000 | €22,500 | €9,000 |
| 4 | €175,000 | €75,000 | €100,000 | €30,000 | €12,000 |
| 5 | €200,000 | €75,000 | €125,000 | €37.500 | €15,000 |
| Total | €45,000 |
In Jean’s case, as her salary increases the benefit of the tax credit increases. The overall tax back due to Jean over the course of the 5 year period is €45,000.
Claiming tax back for the Special Assignee Relief Programme (SARP)
As you can see from the above table, there are a number of elements to the calculation of this tax credit. This is further complicated by The Revenue Commissioners requirement to apply for the credit by using a Form 11 Income Tax Return. As a result many eligible candidates are not actively pursuing this tax relief.
Irish Tax Rebates has identified a number of clients who are eligible for the credit and we have helped them claim a substantial amount of tax back on their behalf. If you feel you may be eligible for the SARP Credit, contact the team at Irish Tax Rebates today.
We can quickly decipher if you are eligible for the tax credit and begin claiming tax back on your behalf.
