Foreign Earnings Deduction (FED)

Who qualifies for FED?

In order to qualify for Foreign Earnings Deduction (FED), you are required to work in a relevant state for at least:

  • 60 qualifying days in 2012, 2013 and 2014
  • 40 qualifying days in 2015 and 2016
  • or
  • 30 qualifying days in 2017 to 2025.

You are required to work the number of qualifying days during a tax year or during a continuous 12-month period spanning two tax years.

You cannot claim FED if you:

What is a relevant state?

Relevant states include Brazil, Russia, India, China and South Africa and:

From 1 January 2013:

  • Egypt
  • Algeria
  • Senegal
  • Tanzania
  • Kenya
  • Nigeria
  • Ghana
  • Democratic Republic of the Congo.

From 1 January 2015:

  • Japan
  • Singapore
  • Republic of Korea
  • Saudi Arabia
  • United Arab Emirates
  • Qatar
  • Bahrain
  • Malaysia
  • Indonesia
  • Vietnam
  • Thailand
  • Chile
  • Oman
  • Kuwait
  • Mexico.

From 1 January 2017:

  • Colombia
  • Pakistan.

What are qualifying days?

From 2012 to 2014, a qualifying day is one of at least four consecutive days worked in a relevant state. The day of arrival in, and the day of departure from that state, cannot be counted.

From 2015 to 2025, a qualifying day is one of at least three consecutive days worked in a relevant state. The time you spend travelling may be included within a qualifying day if you travel either:

  • from Ireland to a relevant state
  • from a relevant state to Ireland
  • from one relevant state to another.

You can count Saturdays, Sundays and public holidays as qualifying days in a relevant state.

For example, if you worked 15 qualifying days in the period 1 June to 31 December 2021 and 30 qualifying days in the period 1 January to 31 May 2022, your number of qualifying days in a 12-month period is 45. You may claim the relief as follows:

  • 2021 tax year: 15 days
  • 2022 tax year: 30 days.

Next: How much allowance can you claim?