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
- 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:
- Democratic Republic of the Congo.
From 1 January 2015:
- Republic of Korea
- Saudi Arabia
- United Arab Emirates
From 1 January 2017:
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?