Budget 2022 and what it means for expats

Budget 2022 and what it means for expats

Table of Contents

The below are the key changes that are likely to be of interest to our clients. An increase in tax credits and standard rate cut-off points will reduce the overall annual tax liability for most.

Tax credit increases and standard cut-off increases

Pre-letting expenses of vacant residential premises

The deduction for pre-letting expenses of a revenue nature incurred on a property that has been vacant for a period of 12 months or more has been extended by three years.

The expenditure must be incurred within the 12-month period before it is let as a rented residential premises.

A cap on allowable expenses of €5,000 per property will apply, and the relief will be subject to clawback if the property is withdrawn from the rental market within four years. The relief will be available for qualifying expenses incurred up to the end of 2024.

Deduction in respect of certain expenses of remote working

The current tax arrangements for working from home will be enhanced and formalised from 2022 onwards. An Income Tax deduction amounting to 30% of the cost of vouched expenses for electricity, heating and internet services for those days spent working from home can be claimed by remote workers.

Taxation of international flight crew

Currently, all individuals who are employed aboard an aircraft which operates in international traffic are subject to Income Tax in Ireland where the aircraft is operated by an enterprise which is managed in the State. The Finance Act will amend this position to exclude non-resident flight crew, subject to certain conditions.

Contact us if you have any queries on how Budget 2022 impacts you.

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