Micheál Martin (Cork South Central, Fianna Fail)
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114. To ask the Minister for Finance the current tax treatment on Irish resident international seafarers' income, including any reliefs in operation; if he has examined the UK relief system in place for resident seafarers; and if he will make a statement on the matter. [34203/16]

Michael Noonan (Limerick City, Fine Gael)
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Irish resident seafarers are subject to tax in this State under Schedule E and the PAYE system of tax deduction applies to their income. Section 472B of the Taxes Consolidation Act 1997 provides for an annual income tax allowance of €6,350 for seafarers who satisfy certain conditions. This is in addition to the standard tax credits that are generally available.

The seafarers' allowance is conditional on a seafarer being at sea for at least 161 days in a tax year. The duties must be wholly performed aboard sea-going ships on international voyages. A sea-going ship is one that is registered in the relevant Register of a Member State and is used solely for the trade of carrying, by sea, passengers or cargo for reward. An international voyage is a voyage that begins or ends in a port outside the State. The most recent year for which figures are available is 2014 when a total of 160 individuals claimed the seafarer's allowance at a cost of approximately €0.3 million.

A review of the Marine taxation regime in Ireland was carried out in 2015. A working group including the Department of Finance, the Department of Agriculture, Food and the Marine, the Department of Transport, Tourism and Sport and the Department of Jobs, Enterprise and Innovation was set up to oversee the Review and it liaised with other Government Departments and agencies including with the Marine Co-ordination Group (MCG) which is under the auspices of the Department of the Taoiseach.

Indecon International Economic Consultants completed the review and carried out a consultation process with key stakeholders. It encompassed a review of the tax supports available to the maritime sector in Ireland, analysis of the benefits available to the sector and the wider economy versus the Exchequer costs and made certain proposals for changes which could be made to enhance or maximise the value for money to the tax payer, taking EU State Aid considerations into account.

Indecon provided economic information on the size of the marine sector, including employment in the sector and growth targets. They also carried out a review of the existing supports, and the tax contribution of the marine sector to the Irish economy. This included a review of marine tax measures in other countries, including the UK.

I understand that the UK tax relief for seafarers is different in structure than Ireland's. The approval of that scheme by the European Commission under state aid rules is a matter for the UK authorities. The tax relief regime in Ireland, in addition to the PRSI exemption for seafarers, have both been approved by the European Union under the applicable state aid rules.