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Irish Post
28-07-2025
- Business
- Irish Post
FED Tax break for foreign businesses asked to be extended
THE IRISH Department of Finance is facing calls to extend the Foreign Earnings Deduction (FED), a tax incentive aimed at promoting Irish business growth in overseas markets. The FED allows Irish tax residents who spend time working in specified countries abroad to reduce their income tax liability. The relief can be applied to up to €35,000 of income annually, potentially saving an individual up to €14,000 in taxes each year. To qualify, a person must spend a minimum of 30 days working in one of the eligible countries within a single tax year. First introduced in 1994, the FED was discontinued in 2003 but later reinstated in the 2012 budget by then-Finance Minister Michael Noonan. At the time, the measure was framed as part of a broader initiative to help Irish companies access and grow in emerging markets. Initially covering just five nations—Brazil, Russia, India, China, and South Africa—the scheme has expanded over the years to include 30 countries. Additions have focused on Asia and the Middle East, with Singapore, South Korea, Saudi Arabia, Qatar, and Bahrain now among the eligible destinations. The United Arab Emirates currently sees the highest usage of the relief. The eligibility criteria have also changed. Originally requiring 60 qualifying days abroad, the threshold was lowered to 40 in 2015 and further reduced to 30 days in 2017 to make it more accessible. According to figures from 2022—the most recent data available—the relief cost the state €3.2 million. That year, 447 individuals claimed the deduction, down from 720 in 2019. However, it remains unclear to what extent the pandemic influenced this drop. The Department of Finance is currently conducting a full review of the FED, with results expected ahead of the budget announcement on October 7. Finance Minister Paschal Donohoe is expected to reveal any proposed changes at that time. Stakeholder consultations form a key part of this review process. According to the Tax Strategy Group, industry feedback so far highlights the importance of FED in encouraging international expansion. Many stakeholders have called for not only a higher level of relief to better support overseas assignments but also an expanded list of qualifying countries to reflect shifting global trade dynamics. The same report from the Tax Strategy Group stated that in light of the uncertain global economic conditions, diversifying trade routes is more critical than ever for Ireland's economic resilience. Speaking at the National Economic Dialogue, Foreign Affairs and Trade Minister Simon Harris echoed this sentiment, stating that trade diversification is becoming increasingly essential. 'There's a real opportunity to be more ambitious in how we explore and enter new markets,' he said. 'This includes efforts within the EU, post-Brexit UK engagement, and tapping into global opportunities. We're supporting Irish exporters to grow their international footprint and make use of existing EU trade deals.' As businesses face rising costs and geopolitical uncertainty, expanding access to tax incentives like the FED could prove to be a timely move in supporting Ireland's global trade goals.
Irish Examiner
19-06-2025
- Politics
- Irish Examiner
Government should shoulder payroll costs in childcare sector, Oireachtas committee told
The Government should take on the payroll costs of childcare providers and make early years educators public sector workers as part of essential reform to the system, an Oireachtas committee has heard. Children's Rights Alliance CEO Tanya Ward told TDs and Senators on the Oireachtas Children's Committee that it could be a 'groundbreaking move'. She said that one in four early years educators are leaving the sector and the main issue is the 'lack of parity of esteem' with the likes of primary school teachers. 'They all go in with the same aspirations, but the primary school teachers will stay in that area of education,' she said. 'And the early years educators won't because they can't live on the wages and salaries. And then any move forward towards affordability, a move towards a public model, the first thing has to be recognition and pay and conditions for the staff working in the services.' In a wide-ranging hearing, the Children's Rights Alliance also fielded questions around the safety of kids online and data on child poverty. Online safety Describing the availability of pornography as a 'massive issue', Ms Ward said the younger a child is when they come into contact with violent pornography, the more damaging it is. 'We are hearing, as you would know, from the rape crisis centers,' she said. 'They are saying it seems to be a feature in some of the sexual assaults that are happening for teenagers. And some of those teenagers present as adults when they come looking for treatment. 'It should be the case that no child should arrive and land on a pornography site, and we need to put the onus actually on the provider to ensure they don't have children accessing the site.' Child poverty She also said that statistics have shown that over 100,000 children in Ireland are living in consistent poverty, 'feeling the grind of deep poverty and the isolation of social exclusion day in, day out'. This has been exacerbated by the housing crisis, leaving thousands of children living day-to-day in emergency accommodation. As well as that, children are living in overcrowded accommodation which is impacting their education and growth. On Monday, Taoiseach Micheál Martin told the National Economic Dialogue that recent increases in the number of children living in poverty must become a 'temporary spike, out of line with the overall trend'. 'Therefore, for Budget 2026, I have asked my ministerial colleagues to plan and come forward with measures that will really make the difference to the most vulnerable families and children,' he said.
Dublin Live
17-06-2025
- Business
- Dublin Live
Social welfare Ireland: Taoiseach hints at child benefit shake up as 'nothing is off the table'
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Taoiseach Micheál Martin has said that all options for addressing child poverty - including a second tier of child benefit - are on the table for Budget 2026. The Programme for Government contains a commitment to "continue to support families with the cost of raising their family through the child benefit payment". It also commits to exploring a targeted Child Benefit. It follows calls for the introduction of a second tier of Child Benefit. Speaking at the National Economic Dialogue in Dublin Castle, Mr Martin said he had identified "two very key areas" that he wanted Budget 2026 to prioritise, including disability and child poverty. The Taoiseach said targeted Child Benefit and all other prospects will be explored ahead of Budget 2026 in October. He said: "We will be examining all aspects of [Child Benefit] and I have a [child poverty] unit within the Department [of an Taoiseach] that is focusing on these issues. I already spoke to Minister of Social Protection Dara Calleary on this, but nothing's off the table. "There's a wide menu there that we can choose from to target resources to meaningfully impact on the child poverty situation. That's not just in terms of income supports, but also in terms of other initiatives in education, for example, the Deis+, which would target children in particular severe disadvantage and other areas. "The Child Benefit remains, but I'm saying we're looking at more targeted responses on the child poverty issue, which can come across a number of instruments." When asked if it was too early to examine the prospect of a second tier of Child Benefit, the Taoiseach repeated that "nothing's off the table". He added: "We're examining all options in perspective. We have to do something targeted and something that will have a meaningful impact on child poverty. Nothing is off the table. There is a very significant expenditure required for something like that as well. There's a range of measures for looking at this." Mr Martin also called for a focus on disability in Budget 2026. This, he said, would include income supports for people with disabilities, investment in respite and supports for transport and mobility. He also said that progress on ending the means test for carers will "obviously come under consideration". Join our Dublin Live breaking news service on WhatsApp. Click this link to receive your daily dose of Dublin Live content. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice. For all the latest news from Dublin and surrounding areas visit our homepage.
Extra.ie
17-06-2025
- Business
- Extra.ie
Two-tier children's allowance now likely in October's budget
Extra child benefit payments for lower-income families are being discussed ahead of the October Budget, as Cabinet ministers have been ordered to bring forward ideas to alleviate child poverty. Taoiseach Micheál Martin set out his stall on core issues he hopes to see addressed in Budget 2026, with anti-child poverty measures and a disability package to be prioritised in the formulation of the social welfare package. Today's top videos STORY CONTINUES BELOW Speaking at the National Economic Dialogue in Dublin, one of the main precursor events to the budget negotiations over the summer, the Fianna Fáil leader said 'nothing was off the table' in targeting our most vulnerable children. Taoiseach Micheál Martin. Pic: Michael Chester His comments come as research from the ESRI has found the number of children who are materially deprived rose in 2023, with almost one in five children now deprived, but not at risk of poverty. A separate report from the Children's Rights Alliance, published last week, showed the number of children in consistent poverty had risen by over 45,000 in a year, bringing the total to over 100,000. In a speech at Dublin Castle yesterday, Mr Martin said, despite increased spending on welfare supports, 'the most recent figures show an unwelcome increase in persistent child poverty'. The Fianna Fáil leader said 'nothing was off the table' in targeting our most vulnerable children. Pic: Getty Images 'We need to make sure that this increase turns out to be a temporary spike, out of line with the overall trend. Therefore, for Budget 2026, I have asked my ministerial colleagues to plan and come forward with measures that will really make the difference to the most vulnerable families and children,' he said. An ESRI paper this month found the system of child-related cash and in-kind benefits 'significantly reduces child income poverty and deprivation'. It said the introduction of a second tier of means-tested child benefit payments is the most cost-effective option to prevent child poverty, and would lift 55,000 out of income poverty. The Programme for Government commits to examining a two-tier system of benefits, which includes more targeted payments on top of the universal rate. Asked if the Government would consider the ESRI's suggestion, Mr Martin said 'nothing is off the table' in budget negotiations. Taoiseach Micheál Martin. Pic: Sasko Lazarov/© 'There's a wide menu we can choose from to target resources to meaningfully impact on the child poverty situation. That's not just in terms of income supports, but also in terms of other initiatives in education. For example, the Deis+, which would target more children in particular with severe disadvantage,' he added. According to the ESRI, the effective top-up of the existing €140-a-month child benefit would cost the State € 772 million annually. Mr Martin acknowledged that introducing another tier of support would be costly, but said child poverty will be a priority issue in budget negotiations. The comments come amid a pivot in fiscal policy, with officials signalling capital investment will take precedence over one-off financial supports in budgetary policy over this Dáil term. Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe. Pic: Sam Boal/Collins Photos Money ministers Jack Chambers and Paschal Donohoe have ruled out a cost-of-living package for 2026, while it has emerged that income-tax cuts are not being viewed as a priority. A well-placed source confirmed discussions on how the two-tiered system would operate are ongoing. However, they said it is 'too early' to speculate how the scheme might operate and how much funding will be required. The source said it is unlikely the universal child benefit will see any decreases. However, asked if the basic rate will be raised in addition to a second layer of payments being rolled out, the source said the Department of Social Protection's focus will lie with measures for lower-income workers. The Department of Finance. Pic: Gareth Chaney/Collins Photos 'We are still in the very early stages of figuring out what a two-tier child benefit system might look like, and discussions remain active. But the Taoiseach's messaging is clear: child poverty and disability will be two key areas addressed in the social welfare package. And that is what the Department is focusing on.' The source could not elaborate on whether certain middle-income earners will qualify for an extra level of support, saying no decisions have been taken on the parameters of a new system. Another Government source signalled an expansion of existing, lesser-known measures will likely form part of any package. They pointed to the Equal Start initiative which aims to ensure children experiencing disadvantage have equitable access and participation in early learning and care and school-age childcare. It provides universal and targeted supports to families and childcare settings. The initiative currently supports 35,000 children, with a senior Government source saying the programme will likely be further expanded in Budget 2026. The source also indicated more resources will be provided to family resource centres, which provide universal services in disadvantaged areas. Louise Bayliss, head of social justice and policy at St Vincent de Paul, told that older children and teenagers are disproportionately affected by poverty. 'We know the needs of babies and very young children are met under existing social welfare payments. However, the older children get, the wider the gap between their needs and the State supports they qualify for grows,' Ms Bayliss said. She said the ESRI's two-tier system does not recognise the difference in needs between children under 12 and those older than 12. Meanwhile, one senior Coalition figure said a separate disability package will be introduced in the budget, which is likely to include the annual cost of disability payments promised in the Programme for Government. The Taoiseach also said yesterday he wants the movement of therapy services into schools to be significantly funded in the budget. He also indicated the process of scrapping the means test for the carers allowance will begin in the next budget.
Sunday World
16-06-2025
- Business
- Sunday World
‘Two-tier' child benefit system being considered in October's Budget
Taoiseach Micheal Martin has said 'nothing is off the table' Different tiers of child benefit to help lift families out of poverty are being considered ahead of October's Budget. Taoiseach Micheal Martin has said 'nothing is off the table' and all options are being looked at to target resources at more vulnerable children. He was speaking at the National Economic Dialogue in Dublin Castle where ministers also signalled that income tax cuts will not be a priority in the Budget to be delivered later this year. Mr Martin said while he is hoping for a negotiated outcome between the EU and US to reach a trade deal before July, the potential threat of tariffs 'creates a completely different context leading into this Budget and future budgets'. He said: 'Until it is resolved, and until certainty can be restored, then it will be challenging in terms of designing a new budget and indeed the future fiscal framework.' Addressing the gathering, which includes stakeholders from employers' groups, business and trade unions, the Taoiseach said there has been an 'unwelcome increase in persistent child poverty' and that 'we need to make sure that increase turns out to be a temporary spike'. Asked afterwards if this meant means testing for the children's allowance he said: 'Nothing is off the table.' He added: 'There's a wide menu there that we can chose from to target resources to meaningfully impact on the child poverty situation.' He said the child benefit payment will remain 'but we are looking for more targeted responses on the child poverty issue, which can across a number of instruments.' The Programme for Government commits to examining a two-tier system of child benefit, which would include more targeted payments on top of the universal rate. Asked if this would be included in October's Budget, Mr Martin reiterated that 'nothing is off the table' and added: 'We are examining all options and perspectives.' Meanwhile, Minister for Finance Paschal Donohoe played down the prospect of income tax cuts, saying other measures such as reducing the VAT rate for the hospitality sector will be prioritised. He told reporters that both Fine Gael and Fianna Fáil are committed to reducing VAT 'but as we make decisions in relation to that, that means there are other things that we cannot do'. Tánaiste Simon Harris appeared to back that up, saying no decision had been made, but added: 'The Government has given very clear and specific commitments in certain areas and those commitments have to be paid for.' News in 90 seconds - 16th June 2025 He said: 'When you say that you're going to reduce the VAT rate in the hospitality sector, that costs a significant amount of money. We are very serious about that pledge, it was a solemn commitment because it is not about a tax-cut for business, it is about realising that in every town and village there are small businesses that create employment that want to be able to keep going and want to be supported.' He said: 'There are lots of ways you help people with the cost of living. Tax is one instrument that can be used but there are lots of other ways. The best way you help people is by making sure they have a job.' Mr Harris said the country is 'in a healthy economic space but with dark clouds on the horizon'.
