Special Assignee Relief Programme (SARP)

by admin

Special Assignee Relief Programme (SARP)

by admin

by admin
What is SARP?

SARP provides Income Tax relief to employees that are assigned to work in Ireland from abroad by their relevant employer.

What is a relevant employer?

A relevant employer must be a company that is incorporated and tax resident in a country in which Ireland has a double taxation or a Tax Information Exchange agreement with.

How do you qualify?

You can claim SARP by meeting the following criteria;

  • You arrive in Ireland between 2012 – 2020, at the request of your employer
  • You worked for your employer for 6 months before arriving in Ireland
  • Your employment in Ireland is for a minimum of 12 consecutive months
  • You were not tax resident in Ireland for the preceding 5 tax years
  • You remain a tax resident in Ireland for all years you claim SARP relief
  • You earn a minimum basic salary of €75,000 per annum, excluding bonuses, commissions, etc
Calculating the relief

A proportion of your salary is disregarded for Income Tax, i.e for 2019, the proportion available is 30% of your income over €75,000 up to €1 million.

This would apply if you commenced employment in Ireland on or after 01st January 2019.

Example – Year 1 only
Mary’s Salary €100,000
SARP Threshold €75,000
Balance remaining over threshold €25,000
Balance @ 30% €7,500
Relief @ 40% €3,000

Therefore, Mary is due €3,000 tax refund.
You can also receive certain travel expenses and tuition costs tax free.

How do you apply?

Employers are required to complete a Form SARP 1A for each employee and submit to Revenue within 90 days of the employee arriving in Ireland.

A tax return must be completed by an employee for each year they claim the relief.

Should you be claiming this relief? Contact us today 01 539 7999
Why not read some of our previous blogs here

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