Foreign Earnings Deduction

Insights

Expanding abroad?

How the Foreign Earnings Deduction can benefit executives and companies

2012 saw the re-introduction of a restricted Foreign Earnings Deduction (FED). This relief allows employees working overseas in 28 countries to make a claim for a refund of Irish tax, if certain conditions are met. The relief was initially allowed for the BRICS Countries (Brazil, Russia, India, China and South Africa) and was extended to other territories, in 2013 and again in 2015.

Since 2012, the number of countries that qualify under the FED rules has expanded from five to 30 countries, providing a much welcome incentive for employees to work overseas in these jurisdictions at a time when Irish businesses are expanding abroad.

This welcome move provides an incentive for employees to work overseas in these jurisdictions at a time when Irish businesses are expanding abroad. 

For more information download a copy of the Expanding abroad? Foreign Earnings Deduction benefits guide.

Did you find this useful?