Tax Relief for Foreign Workers: New Budget Changes
- * Sarp Extension & Changes: the Special Assignee Relief Program (Sarp), offering tax relief on a portion of high salaries for foreign workers, has been extended for five...
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* Sarp Extension & Changes: the Special Assignee Relief Program (Sarp), offering tax relief on a portion of high salaries for foreign workers, has been extended for five years. However, the minimum qualifying income is increasing from €100,000 to €125,000. The government also promises to simplify some of the scheme’s requirements.
* Impact of Income Threshold Increase: Around 953 executives who benefited from Sarp in 2023 earned less than €150,000.An estimated 400 of those may now fall below the new €125,000 threshold and lose benefits, but the overall savings to the government is expected to be relatively small (perhaps under €1 million).
* Industry Reaction: Experts acknowledge the extension provides certainty for companies, but the increased income threshold is seen as unhelpful. Simplification of filing requirements is welcomed.
* Foreign Dividend Exemption Extended: A tax exemption for foreign dividends received by Irish-based companies has also been extended, aiming to attract more multinational investment. The scope of this exemption will be broadened to include more jurisdictions.