Finance Act 2025

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Amendment of section 823A of Principal Act (deduction for income earned in certain foreign states)

22. Section 823A of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution of the following definition for the definition of “qualifying day”:

“ ‘qualifying day’, in relation to an office or employment of an individual, means a day—

(a) which is one throughout the whole of which the individual is present in a relevant state for the purposes of the performance of the duties of the office or employment,

(b) where such day is substantially devoted to the performance of such duties, and

(c) which shall not be counted more than once as a qualifying day;”,

and

(ii) by the substitution of the following definition for the definition of “relevant state”:

“ ‘relevant state’ means, as regards the years of assessment 2012 to 2025, the Russian Federation, and as regards the years of assessment 2012 to 2030, the Federative Republic of Brazil, the Republic of India, the People’s Republic of China or the Republic of South Africa, and includes—

(a) as regards the years of assessment 2013 to 2030, the Arab Republic of Egypt, the People’s Democratic Republic of Algeria, the Republic of Senegal, the United Republic of Tanzania, the Republic of Kenya, the Federal Republic of Nigeria, the Republic of Ghana and the Democratic Republic of the Congo,

(b) as regards the years of assessment 2015 to 2030, Japan, the Republic of Singapore, the Republic of Korea, the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Qatar, the Kingdom of Bahrain, the Republic of Indonesia, the Socialist Republic of Vietnam, the Kingdom of Thailand, the Republic of Chile, the Sultanate of Oman, the State of Kuwait, the United Mexican States and Malaysia,

(c) as regards the years of assessment 2017 to 2030, the Republic of Colombia and the Islamic Republic of Pakistan, and

(d) as regards the years of assessment 2026 to 2030, the Republic of the Philippines and the Republic of Türkiye;”,

(b) by the insertion of the following subsection after subsection (1):

“(1A) For the purposes of the definition, in subsection (1), of ‘qualifying day’—

(a) presence in a relevant state shall include the duration of time spent travelling directly from the State to a relevant state, and from a relevant state to the State or to another relevant state,

(b) a day shall be a qualifying day only where the individual’s presence in the relevant state is reasonably required for the purposes of the performance of the duties of the office or employment, and

(c) a day shall not be precluded from being a qualifying day solely on the grounds that the duties of the office or employment could have been performed in the State on that day.”,

(c) by the substitution of the following subsection for subsection (3):

“(3) Where for any year of assessment an individual resident in the State makes a claim in that behalf to and satisfies an authorised officer that either—

(a) the number of days in that year which are qualifying days in relation to an office or employment of the individual (together with any days which are qualifying days in relation to any other such office or employment of the individual), or

(b) the number of such days referred to in paragraph (a) in a relevant period in relation to that year and no part of which period is comprised in any other relevant period,

amounts to at least 30 days, there shall be deducted from the income, profits or gains of the individual from all offices or employments assessable under Schedule D or E, as may be appropriate, an amount equal to the specified amount in relation to that office or employment or those offices or employments but that amount, or the aggregate of those amounts where there is more than one such office or employment, shall not exceed €50,000.”,

and

(d) in subsection (6), by the substitution of “2015 to 2030” for “2015 to 2025”.