Foreign Earnings Deduction (FED)
Who qualifies for FED?
If you work abroad during the tax year you may qualify for FED. In order to qualify you must work in a relevant state:
- for at least 60 qualifying days in 2012, 2013 and 2014
- for at least 40 qualifying days in 2015 and 2016
- for at least 30 qualifying days in 2017 to 2022.
You must work the number of qualifying days during a tax year or during a continuous 12 month period that spans two tax years.
You cannot claim this deduction 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 2022, a qualifying day is one of at least three consecutive days worked in a relevant state. The time you spend travelling is counted as 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 2015 and 30 qualifying days in the period 1 January 2016 to 31 May 2016, your number of qualifying days in a 12 month period is 45 and so you may claim the relief as follows:
- 2015 tax year: 15 days
- 2016 tax year: 30 days.
Next: How much allowance can you claim?