Pearse Doherty (Donegal South West, Sinn Fein)
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Question 82: To ask the Minister for Finance the benefits that will be allowed for an employee under the special assignee relief programme; and if the employee will be entitled to a medical card. [8512/12]

Michael Noonan (Limerick City, Fine Gael)
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Section 14 of Finance Bill 2012 provides for the Special Assignee Relief Programme (SARP). An exemption from income tax on 30% of salary between €75,000 and €500,000 will be provided for employees that are assigned for a minimum of 1 year. The exemption will be available for a maximum of 5 years. The scheme will operate through the PAYE system as a deduction from income tax, but USC will continue to be payable on the full income amount. Social Insurance will also be payable.

As well as the exemption from income tax the assignee will be entitled to receive at their employers expense the cost of one trip home per year tax free. No other day-to-day expenses will be permitted free of income tax under the scheme. In recognition of differences in curriculums taught and languages spoken by the assignee and/or their children being brought to Ireland, vouched primary or secondary school fees of up to €5,000 per annum per child where paid for by the employer on behalf of an employee will be allowed free of benefit-in-kind taxation.

Share-based remuneration can also qualify for the exemption and there are no restrictions on where the income can be remitted. The scheme will be introduced for an initial three-year period ending on 31 December 2014, in order to allow for review. Any assignee that avails of the scheme during this time will have access to the relief for the period of their assignment, up to the maximum 5 years. As the minimum qualifying salary is €75,000, it is unlikely that any employee that avails of SARP would be eligible for a medical card under the qualifying conditions for medical cards set down by the Minister for Health.