Thursday, 19 May 2022
Department of Finance
219. To ask the Minister for Finance if those who have already received the pandemic special recognition payment are not subject to income tax on the €1,000 payment even though the necessary legislation has not been passed by the Houses of the Oireachtas to date; the administrative measures that are in place to ensure same; and if he will make a statement on the matter. [25500/22]
As the Deputy will be aware, on 19 January 2022 the Government announced a COVID-19 recognition payment for eligible frontline healthcare workers to recognise their unique role during the pandemic.
The resulting “Pandemic Special Recognition Payment” of up to a maximum of €1,000 per individual is to be made to specified categories of frontline healthcare workers. The Government has committed that this payment will not be subject to income tax, USC, or PRSI.
It is expected that the legislation providing for the tax exemption, which is contained in section 3 of the Finance (COVID-19 and Miscellaneous Provisions) Bill 2022, will be enacted shortly. In the meantime, Revenue has advised me that it is providing for the tax exemption to be applied under its care and management provisions in section 849 of the Taxes Consolidation Act 1997. This permits any Pandemic Special Recognition Payment to be made to a qualifying frontline healthcare worker without deduction of income tax, USC and PRSI.
The legislation contained in section 3 of the Finance (COVID-19 and Miscellaneous Provisions) Bill 2022, when enacted, is worded to the effect that all Pandemic Special Recognition payments made under the Government’s scheme will be exempt from tax and so will also cover any payments already made.
Revenue advises me that any Pandemic Special Recognition Payment already made to a qualifying frontline healthcare worker is covered under Revenue’s care and management provisions, therefore permitting the payment to be made without deduction of income tax, USC and PRSI.
For the Deputy's information, on 17 May 2022, Revenue issued eBrief 110/22 on this topic. It is publicly available at .