Michael McGrath (Cork South Central, Fianna Fail)
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281. To ask the Minister for Finance in order to qualify for the foreign earnings deduction, if the person concerned must be employed directly by a company, or will a sole trader or contractor qualify for the scheme; and if he will make a statement on the matter. [34596/15]

Michael Noonan (Limerick City, Fine Gael)
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The Foreign Earnings Deduction, as provided for in section 823A of the Taxes Consolidation Act 1997, applies to income from an office or employment, part of the duties of which are performed in a relevant state, as defined in that section.

It is not a requirement that an employer be a company in order for the relief to apply. However, sole traders or self employed contractors may not avail of the relief as they are self employed individuals and, as such, do not hold an office or employment.

Brendan Griffin (Kerry South, Fine Gael)
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282. To ask the Minister for Finance if he will liaise with the Revenue Commissioners on a matter (details supplied) regarding concerns that legislation is being incorrectly interpreted; and if he will make a statement on the matter. [34600/15]

Michael Noonan (Limerick City, Fine Gael)
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Section 216A of the Taxes Consolidation Act 1997 provides for the rent-a-room scheme. This scheme was introduced in Finance Act 2001 as an incentive to encourage individuals to let rooms in their principal private residence in order to bring about an increase in the availability of rental accommodation, particularly, but not exclusively, for the student sector. It is available in all parts of the country. Extending the scheme to allow its use for short term guest accommodation, would not contribute to the achievement of the socio-economic objectives for which the scheme was introduced.

I would point out that the provision of guest accommodation has never qualified for relief under this scheme. The Revenue operational manual has clearly stated that income from the provision of accommodation to occasional visitors for short periods does not qualify, as visitors use the accommodation as guest accommodation rather than for residential purposes.  Following the entry of AirBnB and others into the short-term accommodation market, Revenue issued an eBrief in February 2015 which amended the operational manual to further clarify that accommodation provided through online booking sites is considered to be guest accommodation. A copy of the operational manual can be accessed on the Revenue website at: .

Any question relating to the charging of income tax is a matter for Revenue. In this regard, the Commissioners advise that property owners who receive income from the provision of occasional guest accommodation should make a return of their taxable profits to Revenue and pay the resultant income tax, if any, under self-assessment rules in the normal manner.

Brendan Griffin (Kerry South, Fine Gael)
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283. To ask the Minister for Finance if surfing lessons will be subject to the 9% rate of value added tax, given that it is a tourism service; and if he will make a statement on the matter. [34661/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that a change in VAT rates must be in compliance with the EU VAT Directive (Council Directive 2006/112/EC).  That Directive generally provides that supplies of goods and services be chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Article 98 of the Directive provides that reduced rates may apply to supplies of goods and services in the categories set out in Annex III to the Directive. As the provision of surf lessons is not specified in the Annex there is no scope for either of the reduced rates to be applied to the supply of surf lessons.  The provision of surf lessons that are purely recreational in nature are, therefore, liable to VAT at the standard rate, currently 23%.  However, surf lessons that are provided in the manner of vocational training or retraining that may lead to a recognised qualification as a surf instructor may benefit from VAT exemption.

Finian McGrath (Dublin North Central, Independent)
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284. To ask the Minister for Finance the estimated cost if the 3.5% universal social charge rate was decreased to 3% for persons earning between €12,012.01 and €17,576 per year; and if he will make a statement on the matter. [34719/15]

Finian McGrath (Dublin North Central, Independent)
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285. To ask the Minister for Finance the estimated cost if the 7% universal social charge rate was increased to 8% for persons earning over €70,044 per year; and if he will make a statement on the matter. [34720/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 284 and 285 together.

With regard to the estimated cost of decreasing the Universal Social Charge from 3.5% to 3% for earners between €12,012.01 and €17, 576, I am advised by the Revenue Commissioners that a Pre-Budget 2016 Ready Reckoner is available on the Revenue Statistics webpage at.  This Reckoner shows a wide range of information including a number of indicative changes to USC rates and thresholds. While the Ready Reckoner does not show all of the specific costing requested by the Deputies, other changes can be estimated broadly on a pro-rata (or straight-line) basis with those displayed in the Reckoner.

In relation to the estimated yield of increasing the 7% Universal Social Charge to 8% for those earning over €70,044, I note that the rate for earners over €70,044 is already 8%.  The Deputy may wish to note that the Ready Reckoner provides an estimated yield for a further 1% increase in the 8% rate to 9%, should this be of interest.All figures provided in the Ready Reckoner are estimates for 2016 incomes from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.