Cian O'Callaghan (Dublin Bay North, Social Democrats)
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226. To ask the Minister for Finance if there is a citizenship or length of residency criteria on applying for tax relief on tuition fees; and if he will make a statement on the matter. [18817/24]

Michael McGrath (Cork South Central, Fianna Fail)
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Section 473A of the Taxes Consolidation Act (TCA) 1997 provides for tax relief at the standard rate of income tax (20%) in respect of “qualifying fees” paid by an individual for a third level education course, subject to the terms and conditions set out in the legislation.

“Qualifying fees” broadly means tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. All approved courses provided by publicly funded or duly accredited universities and institutions in other European Union (EU) Member States or in the United Kingdom are regarded as approved for the purposes of tax relief.

The maximum amount of fees that can qualify for the relief is €7,000 per course per academic year. Any claim for relief is subject to a single “disregard” amount each tax year, currently €3,000 in the case of a full-time course and €1,500 for a part time course.

Entitlement to tax credits and tax reliefs, including the above tax relief for tuition fees, depends on an individual’s tax residency position and other personal circumstances. Residency is determined based on the number of days spent in the State. Broadly, where an individual spends 183 days or more in the State in a year, he or she will be regarded as Irish tax resident. Alternatively, where an individual spends 280 days or more over a period of two consecutive tax years, he or she will be tax resident for the second year.

An individual who is tax resident in the State will be entitled to the normal personal tax credits, reliefs and deductions. By comparison, a non-resident individual is generally not entitled to tax credits. However, in certain circumstances, e.g., where an individual not resident in the State proves that he/she is an Irish citizen, a portion of the credits, reliefs or deductions are available to claim by the non-resident individual under section 1032 of the TCA 1997. This portion is calculated by reference to the ratio of his/her Irish income as a proportion of their total worldwide income from all sources.

As tuition fees is a relief against income tax, the claimant must have an Irish income tax liability to benefit from tax relief on tuition fees. If the tuition fees tax relief due exceeds the claimant’s income tax liability the relief will apply to the extent that it reduces the claimant’s income tax liability for the year of assessment to nil.

A claim for tax relief on tuition fees is made by filing an Income Tax Return. For all taxpayers Revenue provides a free, quick and easy to use facility to file an Income Tax Return. For PAYE taxpayers this is done through myAccount, with self-assessed taxpayers using ROS.

Further information in relation to the above is available on the Revenue website as follows:

Tuition fees paid for third level education including a list of approved courses www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx

Guidance on tax residence rules

www.revenue.ie/en/jobs-and-pensions/tax-residence/resident-for-tax-purposes.aspx

Non-residents and tax credits

Filing an Income Tax Return

PAYE taxpayers - www.revenue.ie/en/jobs-and-pensions/end-of-year-process/index.aspx

Self-assessed taxpayers - www.revenue.ie/en/online-services/services/common/file-an-income-tax-return.aspx for self-assessed taxpayers.