Michael Ring (Mayo, Fine Gael)
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48. To ask the Minister for Finance if he will include the cost of antigen tests as a qualifying health expense for tax relief considering when antigen tests had to be paid for privately for employment purposes (details supplied); and if he will make a statement on the matter. [3652/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that section 469 of the Taxes Consolidation Act 1997 (TCA 1997) provides for tax relief in respect of qualifying health expenses. Only “health expenses” incurred in the provision of “health care”, which has been carried out or advised by a “practitioner”, will qualify for tax relief.

Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”.

Health expenses are defined as “expenses in respect of the provision of health care” and may include, but are not limited to, the following:

- the services of a practitioner,

- diagnostic procedures carried out on the advice of a practitioner,

- maintenance or treatment necessarily incurred in connection with the services or procedures carried out by or on the advice of a practitioner,

- drugs or medicines supplied on the prescription of a practitioner, and

- the supply, maintenance or repair of any medical, surgical, dental or nursing appliance used on the advice of a practitioner.

A practitioner is a person who is:

- registered in the register established under section 43 of the Medical Practitioners Act 2007,

- registered in the register established under section 26 of the Dentists Act, 1985, or,

- in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there".

Where an individual incurs expenditure in obtaining a COVID-19 test he or she will be entitled to claim for tax relief if all of the above criteria are met. In accordance with the general rules of the relief, any portion of costs which have been reimbursed will not be eligible for relief under section 469 TCA 1997.

However, section 118(5K) TCA 1997 provides that, subject to a number of conditions, a charge to tax will not arise where an employer provides an employee with a COVID-19 test. This exemption was provided for in Finance Act 2021 and applies with effect from 1 January 2021.

One of the conditions attached to this exemption is that any testing provided by the employer must be a necessary requirement to enable the employee to perform his or her duties of employment. This may include, for example, scenarios where an employee is required to undergo COVID-19 testing in advance of his or her attendance at the workplace.

Alternatively, where an employer reimburses an employee for any costs that he or she has incurred in obtaining a COVID-19 test independently, a charge to tax on same will not apply where the expense incurred by the employee is vouched and the conditions attached to section 118(5K) TCA 1997 are met.

Further details in relation to income tax relief for health expenses are set out on the Revenue website and in Tax and Duty Manual Part 15-01-12, both of which may be found at the links below:

- Revenue website: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/index.aspx

- Tax and Duty Manual: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.

For the purposes of clarity, references above to Covid-19 tests include antigen tests. There are no plans to add to the above arrangements at the present time.