Foreign Earnings Deduction (FED)

About this scheme

Foreign Earnings Deduction (FED) is an Income Tax relief for individuals who are Irish tax resident but spend time working temporarily in a specified 'relevant state', such as Brazil, India, China, South Africa, and a growing list of other countries phased in since 2012 (most recently the Philippines and Türkiye from 1 January 2026). To qualify, a person must work at least 30 qualifying days in a relevant state within a tax year or a continuous 12-month period spanning two tax years, and must not be a civil or public servant, taxed on the remittance basis, taxed under split-year residence rules, or already receiving Transborder Workers' Relief, SARP relief, or the Key Employee R&D relief. The deduction amount is calculated based on qualifying days worked, employment income, and total employment days in the year — reduced by any income already relieved through a tax treaty's Double Taxation Relief. FED lowers income for Income Tax purposes only, not for USC or PRSI. It is claimed via the individual's Income Tax Return, within four years of the relevant tax year end.

Who can apply

• Must be resident in Ireland for tax purposes and work temporarily in a 'relevant state'
• Must work in the relevant state for at least 30 qualifying days, either within a tax year or within a continuous 12-month period spanning two tax years
• Cannot claim if the related employment income is taxed on the remittance basis
• Cannot claim if you are a civil or public servant, receive the Key Employee R&D relief, are taxed under the split-year residence rules, receive Transborder Workers' Relief, or receive relief under the Special Assignee Relief Programme (SARP)
• The relevant state must be on Revenue's specified list (e.g. Brazil, India, China, South Africa, and a phased-in list of others, most recently the Philippines and Türkiye from 1 January 2026)
• From 2015 to 2025 a qualifying day is one of at least 3 consecutive days worked in a relevant state (travel time may count); from 2026 to 2030 any day spent working in a relevant state for business reasons counts
• The deduction is the lesser of €50,000 (from 2026 to 2030) or €35,000 (for 2012-2025), or a 'specified amount' calculated as qualifying days worked, multiplied by employment income for the period, divided by total days of employment in the tax year
• FED reduces income for Income Tax purposes only — it does not reduce income for USC or PRSI purposes

How to apply

1. 1Track and retain records of your qualifying days worked in a relevant state (records must be kept for 6 years after the period claimed for).
2. 2Calculate the allowance due as the lesser of €50,000 (from 1 January 2026; €35,000 for tax years 2012–2025) or the 'specified amount' — qualifying days worked (D) × employment income for the period (E) ÷ total days the employment is held in the tax year (F) — reduced by any income already relieved by Double Taxation Relief.
3. 3Claim the deduction through your Income Tax Return, within four years of the end of the relevant tax year (e.g. the 2026 tax year must be claimed by 31 December 2030).