Charlie McConalogue (Donegal North East, Fianna Fail)
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189. To ask the Minister for Finance if a person who has an off-farm PAYE job is eligible for the €500 self-employed tax exemption on farm self-employment income; and if he will make a statement on the matter. [39444/15]

Michael Noonan (Limerick City, Fine Gael)
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The Finance Bill 2015 proposes to introduce a new tax credit known as the Earned Income Tax Credit which will, subject to enactment of the Bill, be available for the tax year 2016 and later years.

The tax credit, which is capped at €550, is available in respect of an individual's earned income other than earned income that already qualifies for the Employee (PAYE) Tax Credit.  As such, farm self-employment income which arises from a trade qualifies as earned income for the purposes of the new Earned Income Tax Credit.

Where an individual has income that qualifies for the Earned Income Tax Credit and the Employee (PAYE) Tax Credit, the aggregate value of the tax credits is limited to €1,650, which is the maximum amount available for the Employee (PAYE) Tax Credit.

Similarly, an employee with two separate employments is limited to a maximum Employee (PAYE) Tax Credit of €1,650.

Patrick O'Donovan (Limerick, Fine Gael)
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190. To ask the Minister for Finance the cost of indexing tax credits and bands to wages in the period 2017 to 2021; and if he will make a statement on the matter. [39454/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that the Post-Budget 2016 Ready Reckoner available on the Revenue Statistics webpage at shows a wide range of information, including an indicative cost of indexation at 1% in respect of various bands, rates, credits, exemption limits and the Universal Social Charge. The 1% indexation estimates, on page 9 of the Reckoner, may be used on a pro-rata or straight-line basis to cost other levels of indexation.

I am further advised by the Commissioners that Revenue has no basis to predict the level of wage inflation over the period 2017 to 2021, and therefore is not in a position to cost a related indexation of tax credits and bands.

The relevant costs included in the Ready Reckoner are based on 2016 estimates from the Revenue tax forecasting model using 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.