Ministerial pre-budget submissions on generous tax incentive regimes for executives from multinational companies

THE Department of Finance rejected a proposal to double the length of time a generous tax incentive applies to executives from multinational companies.

Minister Paschal Donohoe was also discouraged from allowing extension of another tax relief scheme for top executives amid fears it could create a “significant loophole”.

In a budgetary submission, Minister Paschal Donohoe was briefed on a plan to allow senior personnel benefit from ten years of a special tax scheme instead of the five years currently available.

Under the arrangement – known as the special assignee relief (SARP) – 30% of income above €75,000 is exempt from income tax.

Those who benefit are also allowed a €5,000 per child tax-free allowance for school fees, if those fees are paid by their employer.

A budgetary submission explained how the Department of Business had asked for the extension of the scheme to “facilitate the attraction and embedding of mobile investment and high calibre individuals”.

The document explained how the SARP scheme was designed to ensure that Ireland remained competitive when vying with other countries for foreign investment.

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